Dell Technologies is once again making significant cuts in its workforce. The company says it wants to focus more on AI and invest more in that department. The company will also review its data center operations. The round of layoffs is supposed to make the organization ‘leaner,’ which is a polite way of saying that excess fat needs to be removed from the organization.
Dell wants to focus more on AI and is cutting its workforce (again) to that end, reports Bloomberg based on an internal memo. This mainly involves “streamlining” sales departments and management layers. This latest reorganization will affect especially the go-to-market teams.
Sales directors Bill Scannell and John Byrne say “we are becoming a leaner company” regarding the latest round of layoffs.
More focus on AI
In addition, the tech giant will establish a new business unit focused on AI products and services. It will also look at how it will approach data center sales and combine existing teams.
Number of layoffs unknown
It is unclear how many people will be laid off exactly. It is possible that the number will be 12,500 employees, about 10 percent of the total workforce. This would reduce the workforce from 120,000 to 100,000. The dismissal of more than 12,000 workers would require a so-called SEC filing with the U.S. stock market watch dog. This has not yet been announced.
Dell Technologies has been reorganizing for some time, not shying away from hefty rounds of layoffs. Last year, it already laid off 13,000 employees.
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