Earlier this month, Dell announced its restructuring efforts focused on artificial intelligence (AI) integration. The job cuts are being implemented across various departments from this week. Some say it will be the largest layoff in the company's history.
"Through the restructuring of our go-to-market teams and continued operations, we are becoming a leaner company," a Dell spokesperson said. The layoffs are expected to continue throughout this quarter, impacting multiple divisions within the organization.
According to reports, Dell is aiming to reduce its workforce to less than 100,000 from the roughly 120,000 full-time employees it reported in May. However, these numbers have not been officially confirmed by Dell.
The redesign aligns with Dell's new AI strategy, which will be in internal trials from October 2023. Vivek Mohindra, SVP, Corporate Strategy, explained to the outlet that AI tools will increase employee efficiency and allow time for more critical tasks. The impact is being felt throughout the company.
The restructuring comes after Dell's value fell to just $64 billion. As Dell navigates this AI-based transformation, some employees see layoffs as an inevitable consequence of technological advances. "I expected that. It's a new quarter and they are trying to make all the support AI-centric, "a laid-off sales worker told Business Insider.