Dell will reportedly lay off 12,500 employees this week, bringing the total to 24,500 in 15 months

What you need to know

Dell will reportedly lay off 12,500 employees this week.
The move is being made to make the tech giant “leaner,” according to a memo sent to Dell employees.
If the estimated job cut figure is accurate, it would mean Dell has cut 24,500 jobs in the past 15 months.

As a tech enthusiast with over two decades of industry experience under my belt, I’ve seen the ebb and flow of the tech landscape like the tides of the ocean. It’s always been a rollercoaster ride, but this latest wave of layoffs is starting to feel more like a tsunami.

Dell is planning to reduce its workforce significantly this week as part of a company restructuring that focuses more on AI. Although the specific number hasn’t been verified yet, it’s expected that around 12,500 positions will be eliminated. A former employee, Ian Armstrong, described the layoffs as a “bloodbath” on LinkedIn and directed people to an alumni network designed to assist during this transition period. This latest move is part of a larger trend by Dell, which has seen around 24,500 job cuts over the past 15 months.

In a memo to staff on Monday, Dell executives Bill Scannell and John Byrne stated that the company is focusing on becoming more efficient. They are working on reducing management levels and reconsidering where they allocate resources.

It’s uncertain how many workers at Dell will lose their jobs this week, but according to a representative, they are streamlining their sales teams as part of a larger restructuring process, aiming to become more efficient. (This version aims to convey the same information in a more conversational and easier-to-understand style.)

The Layoff Tracker on X (formerly Twitter) estimated the 12,500 employee figure.

“Dell informed The Register about the staff reductions, explaining that they are merging teams and focusing their investments more strategically throughout the company. This is part of an ongoing process for us to adapt our business, ensuring we provide top-notch innovation, value, and service to our customers and partners.”

Over the past two years, Dell has managed to become more streamlined, a process that involved reducing its workforce by approximately 13,000 positions during its 2023 fiscal year. This reduction left Dell with around 120,000 full-time employees as of February 2024.

Big cuts by tech giants

Dell will reportedly lay off 12,500 employees this week, bringing the total to 24,500 in 15 months

Apart from Dell, other tech giants like Intel have also reduced their workforce this month. Last week, Intel announced they would let go of approximately 15,000 employees as part of an effort to save $10 billion by 2025. Their CEO, Pat Gelsinger, disclosed information about the layoffs on the company’s website.

As a seasoned business executive with over two decades of experience under my belt, I have encountered numerous challenges and triumphs throughout my career. However, the current state of our company is particularly concerning. Our revenues have not grown as anticipated, and we are yet to fully capitalize on the potential of emerging technologies like AI. This situation is a stark reminder of the need for adaptability and innovation in today’s rapidly evolving marketplace.

Most of the setbacks are primarily focused on Intel’s Foundry services, encountering difficulties. Intel anticipates that Intel Foundry will achieve profitability, or ‘break even’, by the year 2027.

Current tech titans encounter numerous hurdles right now. It isn’t just Intel and Dell grappling with difficulties; other firms share similar challenges. OpenAI is estimated to lose approximately $5 billion this year, potentially leading to bankruptcy if they don’t secure additional funding or significantly alter their income and expenditures.

Companies may have to continue to make changes and cuts to meet goals and hit growth figures.

2024-08-08 15:39

What you need to know

Big cuts by tech giants

Read More