Dell Technologies Inc. is cutting jobs as part of a restructuring of its sales team, including the creation of a new group focused on artificial intelligence products and services.
“We are becoming leaner,” sales executives Bill Scannell and John Byrne wrote in a memo to Dell employees on Monday. “We are streamlining layers of management and reprioritizing where we invest.” In addition to the AI-focused team, executives said the company will also change the way it approaches data center sales.
The Texas-based hardware technology company has enjoyed a renaissance in investor interest over the past year thanks to its high-powered servers that can run AI workloads. Still, there’s growing uneasiness about how long it might take for companies to see payoffs from AI investments, which often come in the form of expensive servers or graphics processing units.
The spokesperson declined to comment on how many jobs would be affected. “Through the restructuring of our go-to-market teams and ongoing actions, we are becoming a leaner company,” the spokesperson said.
Shares were up 34% this year through Friday’s close, though the stock had given back more than 40% of its value since hitting a record high of $179.21 on May 29.
Dell previously announced major workforce reductions starting in early 2023, eliminating 13,000 jobs in that fiscal year. As of February, Dell had about 120,000 full-time employees globally, Dell said in a regulatory filing that month.
The company’s most popular business of selling personal computers has struggled in recent years due to the market downturn following the pandemic. Still, shipments in the computer industry have started to pick up, and Dell hopes that a new generation of AI-optimized PCs will boost upgrades.
“Our goal is to grow faster than the market by engaging with our customers and partners online, virtually or in person, to unleash the value of modern IT and AI for their organizations,” Dell executives wrote in a memo to employees.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
