Dell to lay off over 12,500 employees as it plans to invest more in AI

Dell to lay off over 12,500 employees as it plans to invest more in AI
HIGHLIGHTS

In a statement given to The Register, Dell confirmed the layoffs.

This is the second time in the past 15 months that the company has initiated another layoff.

This is being done to focus more on AI products.

Dell is one of the latest entrants to the long list of companies that are laying off their employees. This is the second time in the past 15 months that the company has initiated another layoff. The news was shared via an internal memo from sales executives Bill Scannell and John Byrne.

As per the memo, Dell is restructuring its sales teams. This is being done to focus more on AI products. Further, it is also revamping its approach to data centre sales, as it is experiencing increased demand because AI companies need to train new models. “We are getting leaner,” the executives said. They further said, “We’re streamlining layers of management and reprioritizing where we invest,”
as reported by Bloomberg.

In a statement given to The Register, Dell confirmed the layoffs. However, it did not specify the number of employees affected. “We are combining teams and prioritising where we invest across the company,” the statement read. “We continually evolve our business, so we’re set up to deliver the best innovation, value, and service to our customers and partners.”

Also read: Intel to layoff over 15,000 employees as part of its $10 billion cost-saving plan

As per the SiliconAngle, approximately 12,500 employees are being laid off this week. The cuts primarily impact Dell’s sales and marketing teams.

Former Dell employee Ian Armstrong, who worked on the company’s UX design team for eight years, described the layoffs as a “bloodbath” in a social media post. He said that Dell has now laid off 24,500 staff in the past 15 months, with 13,000 employees being let go in the previous fiscal year, about half of whom were laid off in February.

Dell is not the first company to lay off its employees, this trend is growing within the broader tech industry too.

Mustafa Khan

Mustafa Khan

Mustafa is new on the block and is a tech geek who is currently working with Digit as a News Writer. He tests the new gadgets that come on board and writes for the news desk. He has found his way with words and you can count on him when in need of tech advice. No judgement. He is based out of Delhi, he’s your person for good photos, good food recommendations, and to know about anything GenZ. View Full Profile

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