Dell Technologies has announced a major restructuring and reorganizing exercise, which will lead to a 10% reduction in its global workforce. This means about 12,500 employees may lose their jobs. The company aims to shift its focus towards artificial intelligence (AI) products and services and plans to make its workforce more efficient.
As part of the reorganization, teams may be merged, and there will be a need to reallocate investments across the company. This process will involve streamlining management layers.
In a similar move last year in 2023, Dell Technologies had transitioned its sales approach, resulting in layoffs within its sales teams. The company had acknowledged adopting a partner-led go-to-market strategy, prioritizing collaboration with partners, particularly for selling its storage solutions. The downsizing of sales teams at that time reflected the company’s commitment to align the workforce with its new strategy, highlighting its proactive approach to align human resources with changing business objectives. In February 2023, Dell had also announced plans to cut 6,650 jobs, representing five percent of its global workforce, due to declining PC shipments and challenging market conditions.
Dell is not the only company trimming its workforce. Intel recently announced job cuts as part of its cost-saving efforts, aiming to reduce its workforce by at least 15%, or over 15,000 employees. This move is expected to result in cost savings of about $10 billion for 2025, according to media reports.
