Dell is Firing Over 12,000 Employees to Become “Leaner”

Dell Technologies is restructuring its sales and marketing divisions, resulting in job cuts, though the exact number of affected employees remains undisclosed. A new team dedicated to artificial intelligence (AI) services is being formed as part of this reorganization, according to Bloomberg.

Initial reports suggested a company-wide layoff of approximately 12,500 employees, constituting around 10% of Dell’s global workforce, beginning on Tuesday. However, these figures have not been officially confirmed and may be inflated.

Dave Vellante, Chief Analyst at CUBE Research, noted that such a significant reduction would typically necessitate an SEC filing, casting doubt on the accuracy of the reported number.

A previous round of layoffs affecting approximately 6,000 employees was disclosed in a 10-K filing with the Securities and Exchange Commission in February 2023. The extent of the current job cuts may become clearer when Dell releases its earnings report on August 29, which is expected to include severance and related expenses.

Dell did not provide any details regarding the layoffs in an email to SiliconANGLE: 

Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritizing where we invest across the company. We continually evolve our business so we’re set up to deliver the best innovation, value and service to our customers and partners

In an internal communication, Bill Scannell, President of Global Sales and Operations, and John Byrne, President of Sales for Global Theaters and Dell Technologies Direct, informed employees about the company’s efforts to streamline operations. The executives emphasized a reduction in management layers and a realignment of investment priorities.