- Dell announces second round of layoffs in 15 months, cutting 12,500 jobs (10% of the workforce) as part of sales division reorganization and AI focus.
- Affected employees were offered severance packages including two months' pay plus one week per year of service, up to 26 weeks maximum.
- Some Dell employees express concerns about job security, with one noting that nearly half their team has been cut in the past two years.
It seems like we're about to see another wave of big layoffs. Recently, Intel had layoffs, cutting over 15% of its workforce and suspending dividends as part of a $10 billion cost-saving plan by 2025.
Now, Dell is the latest tech giant to join in. Dell has announced a second round of layoffs in the past 15 months, cutting around 12,500 jobs, which is about 10% of its workforce. Per reports, these layoffs are part of a major reorganization of its sales division, aimed at modernizing operations and increasing focus on artificial intelligence (AI).
“Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. 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,” stated Dell.
According to another report, Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President, sent a memo announcing the decision. They said it was necessary to “streamline layers of management” and mentioned that the layoffs, though difficult, were essential for future growth. Employees were informed of the layoffs in HR exit meetings, and some found out through rescheduled one-on-one meetings.
Affected employees are being offered severance packages, which include two months' pay plus an additional week for each year of service, up to a maximum of 26 weeks. However, long-term employees are unhappy about losing incentives and stock options. Some employees expected the layoffs due to recent budget cuts and canceled projects.
Some employees have seen the signs of workforce reductions coming. An employee stated that recently he found out that Dell's fall print budgets were cut two weeks ago. To back it up he also stated that even Intel withdrew a major RFP last week, just before announcing mass layoffs and a stock decline.
“With how frequent the layoffs have been, I can't trust there won't be more. I've survived so far, but almost half my team is gone compared to two years ago,” said another Dell employee.
One Redditor even called the regular layoffs at Dell the yearly “rank and yank.” Last year, Dell announced a five percent workforce reduction but ended up cutting 13,000 jobs, double what was expected, over the 2023 fiscal year.
Edited by Harshajit Sarmah
