Approximately 12,500 people, or 10% of Dell Technologies’ global workforce, will be let go in a major reorganisation announcement. This choice is part of a significant organisational restructuring intended to modernise processes and put a greater emphasis on artificial intelligence (AI). A report by Business Insider states that the business announced its plans to centralise its sales teams and establish a new AI-focused sales unit in an internal message addressed to workers on August 6.
The memo, titled “Global Sales Modernization Update,” was penned by senior executives Bill Scannell and John Byrne. It outlined the company’s intentions to streamline management layers and reprioritize investments. “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest,” wrote Scannell and Byrne, emphasizing the company’s drive to become more efficient and competitive in the evolving tech landscape.
While Dell has not officially announced how many jobs were lost, it is believed that around 12,500 people were impacted based on Newsbyte reports. Most of the employees who have been made redundant were those in managerial positions as well as senior management, some of whom were with the company for over 20 years. The major areas affected by this decision included marketing and operations departments exemplifying the extensive organizational activities impacted.
An anonymous employee from the sales division told Business Insider, “It was mostly managers, directors, and VPs. They also hit marketing and operations. They combined organizations and also made the ratio higher for the managers. Now every manager has a minimum of 15 employees.” Another sales worker expressed frustration, stating, “Several managers that have been here for a long time got let go. It just kind of shows you it doesn’t matter how much effort you put into this job. As soon as it helps their bottom line, you’re gone.”
This restructuring is part of a wide-ranging trend which has seen it consistently shrinking its workforce. In February 2023, the organization decreased from an employee count of 130000 to around 120000. The current cuts have also led to the loss of thousands of jobs thus making various staff members uncertain about their employment security as well as career advancement chances within the firm. One employee remarked, “Every six months we have layoffs. There are no opportunities to move up. I have been looking for a new job outside of Dell for nine months.”
A Dell representative confirmed to Business Insider that the company is undergoing an “ongoing series of actions” to streamline operations. Despite the significant layoffs, the company emphasized the potential benefits of these changes. Scannell and Byrne concluded in their memo, “The destination is going to be worth it — it’s about winning and winning big!”
