IT hardware major Dell Technologies is set to lay off employees from its core sales team, the media has reported. Some members from the sales team of the company would leave and those impacted would be supported by the company during the transition, said a report by CRN. It is not yet clear if these layoffs are a part of or in addition to the more than 6,500 job cuts announced by the company earlier in February. This announcement from Dell Technologies comes as it "adopts a new partner-led go-to-market strategy" that pays its direct sales force more to sell storage products through the channel, the CRN report added.
According to the company's partners, this move is an opportunity to double down on the company and drive sales growth.
“Some members of our sales team will leave the company. We don’t make these decisions lightly, and we’ll support those impacted as they transition to their next opportunity,” a Dell spokesperson was quoted as saying in the report.
“We’re always assessing our business to remain competitive and ensure we’re set up to deliver the best innovation, value and service to our customers and partners.”
Bill Scannell, Dell's President of Sales and Customer Operations was quoted as saying that this is the biggest shift in the company's go-to-market (GTM) strategy.
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To recall, in February, Dell laid off more than 6,500 employees, which is approximately 5 per cent of the then 133,000-strong headcount. The new round of job cuts at the tech major came just two weeks after Dell Co-COO Chuck Whitten resigned abruptly, says another report. In its financial results for its fiscal 2024 first quarter, the company reported revenue of $20.9 billion, down 20 per cent and generated operating income of $1.1 billion.