Dell Technologies has announced a second round of layoffs in the past 15 months. The company has fired around 12,500 employees, which is about 10 per cent of its workforce. The latest move is its strategy to better focus on Artificial Intelligence (AI) and modern IT solutions. This reduction aims to streamline operations and prioritise investments in areas that will drive future growth. Here is the full story in 5 points.
Dell fires 12,500 employees in second round of layoffs: Story in 5 points
Dell has confirmed another round of layoffs, impacting thousands of its employees. Approximately 12,500 employees have been let go, representing about ten per cent of the company’s workforce, in an effort to streamline operations and reorient the business, The Register reports.
The layoffs are part of a broader reorganisation aimed at prioritising investments in AI and modern IT solutions. Dell aims to outpace market growth by using AI to unlock new value for customer organisations.
The decision was communicated through a memo by Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President. They highlighted the need to “streamline layers of management” and hinted at the painful but necessary steps to drive future growth. Employees were notified of the layoffs through HR exit meetings, with some finding out through rescheduled one-on-one meetings.
Affected employees are reportedly being offered severance packages that include two months’ wages plus an additional week per year of service, up to a maximum of 26 weeks. However, there has been discontent among long-term employees over the loss of incentives and stock options. Some employees anticipated the cuts, noting recent budget reductions and cancelled projects.
This round of layoffs follows a trend of workforce reductions at Dell, including a notable reduction of around 13,000 employees in the 2023 fiscal year. The company’s decision to call employees back to the office last year, reversing a previous remote-work policy, was also seen as a move to reduce staff. With the current layoffs, Dell’s workforce is expected to fall below 100,000, down from 120,000.
Source Agencies
