Dell Begins Fresh Round Of Job Losses, Amid AI Move – Report

Tom Jowitt,
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More job losses for tech sector as reports suggest Dell is cutting as much as 10 percent of global workforce, or 12,500 staff

Dell Technologies is according to various media reports carrying large layoffs, as it reorganises its sales team.

Bloomberg reported that Dell is cutting staff in the sales team reorganisation, that includes a new group focused on artificial intelligence products and services.

“We are getting leaner,” sales executives Bill Scannell and John Byrne were quoted as writing in a 6 August memo to Dell employees. “We’re streamlining layers of management and reprioritising where we invest.”

Dell job losses

In addition to the AI-focused team, the executives reportedly said the company will change how data centre sales are approached.

The precise number of employees affected has not been officially confirmed.

However various media articles have estimated that approximately 12,500 individuals, or about 10 percent of Dell’s workforce, has been impacted.

The Layoff Tracker account on X (formerly Twitter) has also estimated the 12,500 employee figure.

Dell had already carried out a large scale workforce reduction in 2023, when it reduced its then workforce that had totalled 130,000 last year.

As of February 2024, Dell had around 120,000 full-time employees around the world.

Intel layoffs

Dell is not the only tech firm to be laying off thousands of its staff.

Intel announced 15,000 job losses last week as part of its efforts to save $10 billion through 2025.

At the same time Intel shocked Wall Street with poor Q2 financials, a gloomy assessment of its turnaround plan under CEO Pat Gelsinger, and a weak outlook.

This week Intel was sued by its shareholders, who allege the chipmaker fraudulently concealed problems that led it to post weak Q2 results and suspending its dividend payment.