Dell cuts 10% workers in sales team reorganisation with new AI-focused unit
“We are getting leaner,” sales executives Bill Scannell and John Byrne wrote Monday in a memo to Dell employees. “We’re streamlining layers of management and reprioritizing where we invest.” In addition to the AI-focused team, the executives said the company will change how data center sales are approached.
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The Texas-based hardware technology company has enjoyed a renaissance of investor interest over the past year due to its high-powered servers that can run AI workloads. Still, there is increasing unease about how long it may take companies to see a payoff from AI investments, which often come in the form of expensive servers or graphics processing units.
A spokesperson declined to comment on how many jobs would be affected. “Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company,” the spokesperson said.
The shares increased 34% this year through Friday’s close, though the stock had given back more than 40% of its value since hitting a record $179.21 on May 29.
Dell previously announced a major workforce reduction in early 2023, shedding 13,000 jobs in that fiscal year. As of February, it had about 120,000 full-time employees globally, Dell said in a regulatory filing that month.
The company’s best-known business of selling personal computers has struggled in recent years amid a post-pandemic decline in that market. Still, computer industry shipments have
