Dell Technologies is making some changes as the company has decided to fire 12,500 employees. This is part of its move to become a leaner organization and focus more on artificial intelligence (AI). Dell fired 12500 employees around 10% of its workforce to reorganize its teams and prioritize innovation.
Dell did not disclose the exact number of employees affected by the latest layoffs. However it is estimated that about 10% of its workforce or roughly 12500 people will be let go. Dell has already reduced its workforce by 13,000 jobs last year. This brought the total number of employees down from 133,000 to about 120,000. Dell fired 10% of its workforce as it shifts toward AI products and services.
Financial Performance
Dell’s financial performance has also seen a decline. The company reported annual sales of $88.4 billion for the 2024 fiscal year. This is a 14% drop from the previous year and $13.5 billion less than its record sales in 2022. Despite this Dell remains committed to its restructuring efforts. Dell fired 10% of its workforce to streamline its operations and improve its financial standing.
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Industry Reactions
The layoffs have caused various reactions within the industry. Gary McConnell who is the CEO of VirtuIT Systems sees these changes as Dell’s increased reliance on channel partners. He encourages those affected to seek opportunities within the channel. Bob Venero who is the CEO of Future Tech believes that the cutbacks are part of Dell’s strategy to use AI for more productivity. Denise Millard who is Dell’s Chief Partner Officer tells that the reorganization will promote better collaboration and unlock market opportunities. Therefore Dell fired 10% of its workforce as part of this strategic shift.
Dell is focusing on AI products and services as the company aims to become a leaner and more growth-focused organization. Bill Scannell and John Byrne who are Dell executives stated that Dell is streamlining layers of management and reprioritizing investments. They emphasized that Dell wants to grow faster by meeting customer needs through various channels. Therefore Dell fired 12500 of its workforce to align with this new strategy.
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