Dell Layoffs: Firm To Fire Several Sales Employees Amid Restructuring

In a memo to Dell employees on Monday, sales executives Bill Scannell and John Byrne stated, “We are getting leaner. We’re streamlining layers of management and reprioritising where we invest"

Dell Technologies is reorganising its sales teams, which includes laying off its workforce. As part of this restructuring, the company is creating a new division specifically dedicated to artificial intelligence products and services. This strategic move aims to better align Dell's sales operations with its focus on AI and other emerging technologies.

In a memo to Dell employees on Monday, sales executives Bill Scannell and John Byrne stated, “We are getting leaner. We’re streamlining layers of management and reprioritising where we invest.” Alongside the establishment of a new team focused on artificial intelligence, the executives also announced that the company will be altering its approach to data centre sales, reported Bloomberg.

The Texas-based hardware technology company has seen a resurgence of investor interest over the past year, driven by its advanced servers capable of handling AI workloads. However, there is growing concern about the timeframe required for companies to realise returns on their AI investments, which typically involve costly servers or graphics processing units.

A spokesperson told Bloomberg, “Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company.”

Through Friday’s close, the shares had risen 34 per cent this year, although they have since lost over 40 per cent of their value from a peak of $179.21 reached on May 29.

In 2023, Dell announced a significant workforce reduction, cutting 13,000 jobs during that fiscal year. As of February, the company had approximately 120,000 full-time employees worldwide, according to a regulatory filing from that time.

Dell’s core business of selling personal computers has faced challenges recently, mainly due to a market downturn following the pandemic. However, there are signs of recovery in computer industry shipments, and Dell is optimistic that a new generation of AI-optimized PCs will drive upgrades.

In a memo to employees, the Dell executives stated, “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.”