US-based tech company Dell has announced another round of job cuts. According to a repot by Bloomberg, the decision is part of Dell’s broader effort to pivot towards artificial intelligence (AI) products and services, reflecting the growing importance of AI in the tech industry.
While the exact number of job cuts hasn’t been revealed by Dell, several online reports peg the number to be in thousands. A layoff tracking website says that close to 12,500 employees will be impacted.
The layoffs, primarily affecting the sales and marketing teams, were communicated through an internal memo by Dell executives Bill Scannell and John Byrne. The memo emphasised the need to streamline operations and prioritise investments in AI capabilities. “We are getting leaner,” the executives stated, highlighting the company’s focus on becoming more efficient and agile in response to market demands.
"We don't do this lightly as we know these changes impact people and our teams. The destination is going to be worth it — it's about winning and winning big!”, the executives told employees.
Dell’s restructuring includes the formation of a new AI-focused unit, aimed at enhancing the company’s offerings in AI-optimised servers and data centre solutions
This latest round of layoffs follows a significant workforce reduction earlier in 2023, where Dell cut 13,000 jobs. The tech industry as a whole has been facing a wave of layoffs, with nearly 2,000 tech companies laying off over 260,000 workers in 2023. More job cuts have been initiated by several big companies in 2024.
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