Dell Technologies has announced a major restructuring and reorganising exercise, which will lead to its global workforce being trimmed by 10 per cent. That means, about 12,500 employees may be rendered jobless. The company is looking at increasing its focus on artificial intelligence (AI) products and services, and hopes to make its workforce leaner.
Teams may be fused as part of the reorganisation and the need to reprioritise investments across the company. The process will require streamlining of management layers.
Around the same time last year, that is, 2023, Dell Technologies had undertaken a transition in its sales approach, which had resulted in layoffs within its sales teams. The company had at the time admitted to adopting a partner-led go-to-market strategy, prioritising collaboration with partners to sell its products, particularly storage solutions. At the time, Dell’s choice to downsize its sales teams reflected its determination to align the workforce with the new strategy, underscoring the company’s proactive approach to match human resources with evolving business goals. Earlier, in February 2023, Dell had announced plans to cut 6,650 jobs, or five per cent of its global workforce amid declining shipments of personal computers and tough market conditions.
Dell is not alone when it comes to workforce trimming. It has hardly been a week since Intel announced job cuts as part of its endeavour to save costs. In fact, it decided to reduce its workforce by at least 15 per cent. That means, its workforce will be trimmed by over 15,000, which will result in cost savings of about $10 billion for 2025, as per media reports.
