Aug 09, 2024 15:00:00

Dell to lay off 12,500 employees, or about 10% of its workforce, in a massive job cut

By

Thomas Hawk

PC maker Dell is reportedly cutting more than 12,500 jobs, or about 10% of its workforce. The cuts, which include longtime employees, are large-scale, and Dell is explaining that they are part of a 'restructuring to become a leaner company.'

Dell Layoffs Hit Sales Team With New Unit Focused on AI - Bloomberg
https://www.bloomberg.com/news/articles/2024-08-05/dell-layoffs-hit-sales-team-with-new-unit-focused-on-ai

Dell starts fresh layoffs as it looks to AI for an upside • The Register
https://www.theregister.com/2024/08/06/dell_layoffs/

The layoffs began on August 6, 2024, with many employees suddenly being called into one-on-one meetings to be informed of their dismissal, according to employee posts in online forums and LinkedIn status updates from Dell employees.

It is estimated that the scale of the workforce reduction will be about 10% of the total workforce, or about 12,500 people. According to the IT news site The Register, the scale of the workforce reduction is so large that the HR department alone cannot handle it, and some of the layoff notices will be given by direct superiors. Dell has set a goal of reducing its total number of employees from 120,000 to less than 100,000, but it is unclear whether this goal has been achieved with this reduction.

The possibility of Dell making large-scale job cuts was reported as of March 2024 , when Dell's global sales and customer operations president Bill Scannell and global channel president John Byrne wrote in a memo to employees that they would 'streamline management hierarchies and reprioritize investments.' In addition to creating an AI-focused team, they said they intend to change how they approach data center sales.

In fact, according to The Register, the cuts are mostly being made to sales staff, which leads them to speculate that Dell may be shifting away from direct sales and toward sales through partners.

by Watchcaddy

Dell had also declared that it would focus on remote and hybrid work, but has ordered employees to return to the office by 2023, sparking criticism from within the company that the order to return to the office is akin to a stealth layoff of women.

Dell confirmed the cuts to The Register, saying, 'Through a restructuring of our go-to-market teams and a series of ongoing actions, we are transforming into a leaner company, consolidating teams and prioritizing where we invest across the company. We continue to evolve our business so we're positioned to deliver the best innovation, value and service to our customers and partners.'

The severance package will include two months' salary plus one week for each year of service, up to a maximum of 26 weeks' salary, but some of the employees who are being laid off are unhappy about losing long-service incentives and stock options.