Dell cuts jobs, reorganizes sales teams amid AI focus
TEXAS, UNITED STATES — Dell Technologies Inc. is restructuring its sales teams, including job cuts and the creation of a new unit focused on artificial intelligence (AI) products and services.
This move comes as the company aims to streamline operations and capitalize on the growing demand for AI-related technologies.
Job cuts and new AI-focused unit
In a memo to employees, sales executives Bill Scannell and John Byrne stated, “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest.”
The reorganization includes the formation of a new AI-focused team and changes to the company’s approach to data center sales.
While Dell has not disclosed the exact number of jobs affected, a company spokesperson confirmed the restructuring efforts, saying, “Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company”.
Meanwhile, according to the Layoff Tracker, an estimated 12,500 Dell employees in the sales division, have lost their jobs..
This follows a major workforce reduction in early 2023, when Dell shed 13,000 jobs.
As of February 2024, the company had approximately 120,000 full-time employees globally.
Aside from Dell, other tech companies that slashed jobs to embrace AI were Accenture, IBM, and Duolingo.
Challenges with return-to-office mandate
The layoffs come amid an ongoing conflict between Dell and its employees over the company’s return-to-office policy.
Despite a mandate requiring staff to work from the office three days a week, approximately half of Dell’s workforce has reportedly chosen to continue working from home full-time.
This resistance persists even after Dell implemented a color-coded system in May to track employee office attendance through badge swipes and VPN connections.
