Dell lays off 12,500 employees to focus on AI: The full story in 5 points
Dell Technologies has announced its second round of layoffs in the last 15 months. The company has laid off about 12,500 employees. The affected employees are reportedly being offered a severance package of two months’ salary and an additional week for every year of service. Here’s the whole story in 5 points.
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Dell Technologies has announced its second round of layoffs in the last 15 months. The company has laid off about 12,500 employees, which is about 10 percent of its workforce. The latest move is its strategy to better focus on artificial intelligence (AI) and modern IT solutions. The cuts are aimed at streamlining operations and prioritising investments in areas that will drive future growth. Here’s the full story in 5 points.
Dell lays off 12,500 employees in second round of layoffs: The story in 5 points
-Dell has confirmed another round of layoffs that will affect thousands of its employees. About 12,500 employees have been laid off, roughly ten percent of the company’s workforce, in an effort to streamline operations and reorient the business, The Register reports.
– The layoffs are part of a broader restructuring aimed at prioritizing investments in AI and modern IT solutions. Dell aims to drive market growth by using AI to unlock new value for customer organizations.
-The decision was communicated through a memo by Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, President of Global Channels. They highlighted the need to “streamline layers of management” and indicated painful but necessary steps to drive future growth. Employees were informed of the layoffs through HR exit meetings, while some found out through rescheduled face-to-face meetings.
– The affected employees are reportedly being offered severance packages that include two months’ pay and an additional week for each year of service, up to a maximum of 26 weeks. However, there is discontent among long-term employees over the loss of incentives and stock options. Some employees had anticipated layoffs given recent budget cuts and cancelled projects.
– This round of layoffs follows a trend of workforce reductions at Dell, including a significant reduction of about 13,000 employees in the 2023 fiscal year. The company’s decision to call employees back to the office last year, reversing a previous remote-work policy, was also seen as a move to reduce staff. With the current layoffs, Dell’s workforce is expected to fall from 120,000 to below 100,000.
