Dell Technologies has revealed a second wave of layoffs within a span of 15 months. Approximately 12,500 employees have been let go, representing around 10 percent of the company’s total workforce. This decision aligns with the company’s strategy to concentrate more on Artificial Intelligence (AI) and contemporary IT solutions. The objective of this workforce reduction is to enhance operational efficiency and to prioritize investments in sectors that are expected to foster future growth. Below are the key details summarized in five points.
Story in 5 points:
- Dell Technologies has revealed a second wave of layoffs within a span of 15 months. Approximately 12,500 employees have been let go, representing around 10 percent of the company’s total workforce. This decision aligns with the company’s strategy to concentrate more on Artificial Intelligence (AI) and contemporary IT solutions.
- The objective of this workforce reduction is to enhance operational efficiency and to prioritize investments in sectors that are expected to foster future growth. Below are the key details summarized in five points.
- The announcement regarding the decision was conveyed via a memorandum issued by Bill Scannell, President of Global Sales and Customer Operations, alongside John Byrne, President of Global Channels. They emphasized the necessity to “streamline layers of management” and alluded to the difficult yet essential measures required to foster future growth. Employees were informed of the layoffs during HR exit meetings, with some learning of their situation through rescheduled individual meetings.
- Those affected are reportedly being provided with severance packages that consist of two months’ salary plus an additional week for each year of service, capped at a maximum of 26 weeks. Nevertheless, there has been dissatisfaction among long-serving employees regarding the elimination of incentives and stock options. Some employees had anticipated these layoffs, citing recent budget cuts and the cancellation of projects.
- This latest round of layoffs continues a pattern of workforce reductions at Dell, which included a significant decrease of approximately 13,000 employees during the 2023 fiscal year. The company’s decision to require employees to return to the office last year, reversing a prior remote work policy, was also perceived as a strategy to downsize the workforce. Following the current layoffs, Dell’s employee count is projected to drop below 100,000, down from 120,000.