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.
Dell will cut thousands of jobs this week in a move that will reorganize the company’s sales team and place a bigger emphasis on AI. While the company has not confirmed the exact figure, reports indicate that Dell will lay off 12,500 people. One former Dell employee, Ian Armstrong, referred to the layoffs as a “bloodbath” on LinkedIn. Armstrong also pointed people to an alumni channel aimed at helping people during the transition. This is only the latest set of massive cuts by the tech giant, which are estimated to total 24,500 over the past 15 months.
“We are getting leaner,” said Dell executive Bill Scannell and John Byrne in a memo to employees sent out Monday. “We’re streamlining layers of management and reprioritizing where we invest.”
Dell did not confirm how many employees will be laid off this week. A spokesperson said to Bloomberg, “through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company.”
🚨 LAYOFF ALERT – 🌏Dell Technologies Inc. is cutting jobs as part of a reorganization of its sales teams, impacting 12,500 employees approximately, as the company aims to become leaner. pic.twitter.com/oJpZH1Ww92August 5, 2024
The Layoff Tracker on X (formerly Twitter) estimated the 12,500 employee figure.
Dell shared a statement with The Register about the layoffs, stating, “we are combining teams and prioritizing where we invest across the company. We continually evolve our business, so we’re set up to deliver the best innovation, value, and service to our customers and partners.”
Sticking with Dell’s phrasing, the giant has gotten “leaner” two years in a row. Dell cut 13,000 jobs in the 2023 fiscal year. Back in February 2024, Dell had around 120,000 full-time employees.
Big cuts by tech giants
Dell is not the only tech giant to lay off thousands of employees this month. Intel announced 15,000 cuts last week in an attempt to save $10 billion through 2025. CEO Pat Gelsinger shared details about the layoffs in a post on the company’s website:
“Our revenues have not grown as expected—and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, and our margins are too low. We need bolder actions to address both—particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”
The majority of the losses center around Intel Foundry services, which has run into challenges. Intel expects it to take until 2027 for Intel Foundry to break even.
Tech giants face a variety of challenges at the moment. Intel and Dell are far from the only companies to face struggles. OpenAI is projected to lose $5 billion this year and could face bankruptcy if it does not receive further investment or see drastic changes in revenue and expenses.
Companies may have to continue to make changes and cuts to meet goals and hit growth figures.
