10% of its global workforce.
Dell Technologies has announced a second round of layoffs in the past 15 months. The computer giant has fired around 12,500 of its employees, making up about 10% of its overall workforce.
The decision reportedly constituted a major re-organization of its sales division as part of a strategy to modernize operations and focus on artificial intelligence. Dell aims to outpace market growth by using AI to unlock new value for customer organizations.
Dell’s announcement was communicated through an internal memo on August 6th titled “Global Sales Modernization Update”, which was sent by Dell’s senior executives Bill Scannell (President of Global Sales and Customer Operations) and John Byrne (Global Channels President).
The executives wrote, “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest.”
Employees were notified of the layoffs through HR exit meetings, with some finding out through rescheduled one-on-one meetings.
Affected employees are allegedly being offered severance packages that include two months’ wages, plus an additional week per year of service (up to a maximum of two weeks). Reportedly, these layoffs primarily affected managers and senior managers, some who had decades worth of experience at the company.
There has been discontent among employees over the loss of incentives, lack of stock options and job insecurity. Some expressed frustration at the effort and time they put into the job, only for them to be summarily dismissed at such short notice.
Dell’s round of layoffs follows a trend of recent workforce reductions, 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.
Dell’s announcement received a worried reaction on social media, with many concerned about how AI will impact jobs going ahead. Many have also expressed anger over the company’s desire for “winning” being greater than the wellbeing and security of its employees.
