Nw Desk In a massive job cut, Dell, citing reasons for the integration of AI, has done workforce reductions.
Employees across sectors around the world have been facing massive layoffs lately. Most of these companies, including Cisco and now Dell, have cited reasons for integrating AI, resulting in workforce reductions. Dell recently announced layoffs of 20,000+ employees starting this week. The layoffs have begun across different departments and aim to reduce the workforce to under 100,000.
Dell makes massive layoffs.
Earlier this month, Dell announced restructuring efforts focused on AI integration, resulting in massive layoffs. The restructuring aligns with Dell’s new AI strategy, intended to enhance staff efficiency and streamline solutioning processes. This resulted in Dell’s layoffs, which some employees believe could be the largest round of workforce reductions in the company’s history.
“Becoming a leaner company.”
A spokesperson of Dell told Business Insider, “Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company.” The layoffs are expected to happen throughout the quarter, affecting multiple divisions within the company.
Dell aims to reduce its workforce to under 100,000 employees.
A source who spoke to Business Insider on condition of anonymity said that Dell aims to reduce its workforce to under 100,000 employees, down from approximately 120,000 full-time staff as per reports in May. However, the company hasn’t yet confirmed these numbers.
Restructuring aligns with Dell’s new AI strategy.
The restructuring aligns with Dell’s new AI strategy, which has been in internal trials since October 2023. SVP of corporate strategy Vivek Mohindra explained that AI will help simplify complex tasks, free up more time, and enhance staff efficiency.
What do employees say on the matter?
One employee said, “Purely from a business perspective, it makes sense,” noting that some roles only provided statements of work to another division. Another employee said, “There is a desire to considerably downsize this specific workforce and replace them with AI solutions for sellers to be more self-sufficient and to speed up our current solutions processes.”
