Dell Technologies is cutting roles as it reorganises its sales team and establishing a new group focused on artificial intelligence (AI) products and services, reports Bloomberg.
In a memo to staff, Dell executives Bill Scannell and John Byrne said: “We are getting leaner. We are streamlining layers of management and reprioritising where we invest.”
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Dell’s move comes as the company aims to adapt to the evolving technology landscape and follows a period of increased investor interest in its AI-capable servers.
The Texas-based company, known for its high-powered servers suitable for AI workloads, is also making strategic changes to its data center sales approach.
Despite the potential of AI, there is concern regarding the time it may take for companies to realise returns on their AI investments, which typically involve costly servers and graphics processing units.
“Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company,” a Dell spokesperson was quoted by the publication as saying.
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By GlobalDataWhile Dell did not specify the number of jobs impacted by this reorganisation, it follows a significant workforce reduction earlier in 2023, where the company cut 13,000 jobs.
As of February 2024, Dell reported a global workforce of approximately 120,000 full-time employees.
The reorganisation also coincides with a challenging period for Dell’s primary business of selling personal computers, which has seen a decline post-pandemic.
However, there is optimism within Dell that a new generation of AI-optimised PCs will drive market upgrades.
“We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually, or in person, to unlock the value of modern IT and AI for their organisations,” the Dell executives wrote in the memo.
In a broader context, the technology sector is facing a wave of layoffs.
In 2023, nearly 2,000 tech companies laid off over 260,000 workers, and the trend has persisted into 2024 with more than 126,000 job cuts reported so far, according to layoffs.fyi.
Other tech giants, including Intel, have also announced significant job reductions as part of cost-cutting measures to enhance market competitiveness.
