Looks like the layoff season is not over yet. After Intel, Dell has now announced layoffs for close to 12,500 of its employees to reorganise the company structure for its AI needs.
While the official number of affected employees is yet to be confirmed, it is being said that the tech giant will remove 10% of its workforce which roughly translates 12,500 people. This shift towards AI-based products and services has impacted various sales teams, including long standing employees.
Dell has officially confirmed the layoffs citing its endeavour to become a leaner company through reorganisation.
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In a memo to employees, Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President at Dell, discussed “streamlining layers of management.” They emphasised Dell’s ambition to outpace market growth by leveraging “the value of modern IT and AI” for client organisations.
Most employees affected by the layoffs, are expected to receive a severance package comprising two months’ wages, plus an additional week for each year of service, up to a maximum of 26 weeks. This may also include potential partial bonus payouts. However, some long-term employees have expressed dissatisfaction over losing long-term incentives and stock options as part of this process.
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