Dell Technologies is restructuring its sales teams, which involves laying off employees. The company is creating a new division dedicated to artificial intelligence (AI) products and services to align its sales operations with its focus on AI and emerging technologies.
Key Points
- Restructuring and Layoffs: Dell is laying off several sales employees as part of a broader restructuring effort. This move includes streamlining management layers and reprioritizing investments.
- AI Focus: The restructuring involves establishing a new division focused on AI products and services, aiming to leverage Dell’s advanced servers capable of handling AI workloads.
- Sales Strategy Changes: Along with the AI division, Dell is also altering its approach to data center sales to better align with its strategic goals.
- Company Statement: Sales executives Bill Scannell and John Byrne stated in a memo, “We are getting leaner. We’re streamlining layers of management and reprioritising where we invest.”
- Market Performance: Dell’s shares had risen 34% this year but have since lost over 40% of their value from a peak in May. Despite this, there is investor interest in Dell’s AI capabilities.
- Past Workforce Reductions: In 2023, Dell cut 13,000 jobs, reducing its workforce to approximately 120,000 full-time employees as of February. As per Mint, this time, “The precise number of employees affected has not been officially confirmed, but it is estimated that approximately 12,500 individuals, or about 10% of Dell’s workforce, have been impacted”,
- Core Business Challenges: Dell’s core business of selling personal computers has faced challenges due to a market downturn post-pandemic. However, there are signs of recovery, and Dell is optimistic about AI-optimized PCs driving future upgrades.
- Future Outlook: Dell aims to grow faster than the market by enhancing its customer and partner interactions across various channels to unlock the value of modern IT and AI.
Statement from Dell Executives
In a memo to employees, Bill Scannell and John Byrne emphasized the company’s commitment to growing faster than the market by meeting customers and partners through various channels to unlock the value of modern IT and AI.
