Staff Say It's No Surprise As Dell Plans To Fire Over 12,500 Employees After AI Pivot; Details Here

Dell Layoffs: "This is horrible short-term for morale. I wouldn't be surprised if it's going to be in the dumpsters until the next Tell Dell or until we see third-quarter earnings,” an employee said

Dell Layoffs: Dell began a significant internal overhaul this week to simplify operations and reimagine work and customer experiences through artificial intelligence (AI), according to an internal memo from Dell executives, reported Business Insider. As part of this transformation, the sales division has been restructured, and management has been streamlined.

The exact number of employees affected has not been officially confirmed, but a Newsbyte report estimates that around 12,500 people, or about 10 per cent of Dell's workforce, have been impacted.

Dell has also implemented a round of layoffs, with some employees anticipating that these cuts may persist throughout the quarter and potentially become the largest in the company’s history. "Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company," a Dell spokesperson told the publication.

Internal sources who spoke to Business Insider on the condition of anonymity indicated that Dell plans to trim its workforce to under 100,000 employees, down from about 120,000 full-time staff reported in May. Dell has yet to confirm these figures officially.

Some employees from different departments shared their perspectives on the changes in the report. A sales support employee described how the pace of work had slowed throughout the week as staff waited for an invitation to a meeting.

"This is horrible short-term for morale. I wouldn't be surprised if it's going to be in the dumpsters until the next Tell Dell or until we see third-quarter earnings,” the employee said in the report.

Another employee described the situation, saying, "The analogy being used is 'we're burning the boats,'" and added that it felt "a bit of a dumpster fire."

The layoffs coincide with Dell's rollout of its new AI strategy, which, after internal trials since October 2023, now extends to product development, content management, sales tools, and customer service.

"I expected it," said a laid-off sales worker who has seen their team shrink by over 60 people. "It's a new quarter, and they're working on getting all support AI-focused. I'd rather be let go with a package than quit," they added.