Dell Technologies Inc. is cutting jobs as it reorganizes its sales teams and introduces a new unit focused on artificial intelligence (AI) products and services. Sales executives Bill Scannell and John Byrne informed employees in a memo on Monday, stating, “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest.” Alongside the new AI-focused team, the company will also revamp its approach to data center sales.
Dell, based in Texas, has seen renewed investor interest over the past year due to its powerful servers capable of running AI workloads. However, there are concerns about how long it might take for companies to see returns on AI investments, which often require costly servers or graphics processing units.
A spokesperson did not specify the number of jobs affected but confirmed that the reorganization aims to make the company leaner. Despite the changes, Dell shares have increased by 34% this year, although the stock had lost more than 40% of its value since reaching a record high on May 29.
Earlier in 2023, Dell announced a significant workforce reduction, cutting 13,000 jobs. As of February, the company had around 120,000 full-time employees globally. Dell’s primary business of selling personal computers has faced challenges due to a decline in the market post-pandemic. However, the company is hopeful that a new generation of AI-optimized PCs will drive upgrades and growth.
“We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually, or in person, to unlock the value of modern IT and AI for their organizations,” the executives wrote in the memo.
