As AI is now the name of the game, more and more companies are changing their focus towards it. That seems to be what Dell is doing as well as laying off thousands of its employees as a way to boost its profitability. As Bloomberg reports the company is cutting 10% of its employees, which equates to about 12,500 people. This means that in total over the past year, it has affected a total of 25,000.
This also comes not too long after Intel’s recent woes, where we saw the brand cut 15% of its workforce. This shows that these big companies have quite the workforce at their disposal – but also highlights a high turnover of employees. Sadly, it’s a worrying trend at the moment, with thousands of lives affected when things don’t quite go to plan. As the focus on AI might not be bringing in the returns that have been expected of it.
Why Dell is cutting costs
According to a Dell memo executives want to “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”. This is the lead for the massive cuts and restructuring after a decline in home PCs and focusing on data centers and AI.
Being one of the Copilot PC sellers is one way it’s hoping to improve its chances along with the sales of server hardware for all the data centers. But with the tough competition in the space, it might be a struggle to find enough of a hit to work, it will just take time to see if it works out for Dell. Cutting employees and combining teams may hinder its business.
A former employee at Dell, Ian Armstrong who worked on the UX design team called the news a “bloodbath”. Counting up the mass layoffs for the company and trying to help out those affected.
