Dell

Dell Technologies is conducting a significant workforce reduction as part of a reorganization of its sales and marketing teams, with reports indicating up to 12,500 employees, or approximately 10% of its global workforce, could be affected. The exact number remains unconfirmed, as the company has not provided specifics, but the move aims to streamline operations and prioritize investments, particularly in emerging areas like artificial intelligence services. This follows a series of layoffs over the past year, including 6,000 cuts in February 2023, as Dell faces challenges such as competitive pressures and shifting market demands impacting profitability. The tech industry continues to see workforce adjustments, with similar recent actions by companies like Intel.

Dell Technologies has reduced its global workforce by approximately 13,000 employees, as disclosed in a March 2024 filing. This represents about 10% of its workforce, which stood at roughly 120,000 in early 2024. The layoffs are part of a broader cost-cutting initiative driven by nearly two years of sluggish demand for personal computers, which contributed to an 11% year-over-year revenue drop. Despite the cuts, Dell is forecasting a return to growth for its PC business in fiscal 2025, pinning hopes on AI-enabled devices and servers, while also navigating challenges from its changed commercial relationship with VMware.

Dell Technologies is implementing layoffs within its core sales teams as part of a strategic shift to a new partner-led go-to-market model, particularly for storage products. While the exact number of affected employees was not specified in this announcement, the company is restructuring to incentivize its direct sales force to sell more through channel partners. This move, confirmed by a Dell spokesperson, aims to enhance competitiveness and align with market demands that favor indirect sales. The layoffs occur in the broader context of the technology industry's adjustments and follow a larger reduction of 6,650 jobs announced by Dell earlier in the year. Partners view this change positively, seeing it as an opportunity to deepen collaboration with Dell and drive future growth.

Dell laid off 6,650 employees representing approximately 5% of its workforce on 2023-02-06.