Dell Reorganizes Sales Division with Focus on AI, Implements Major Layoffs
Dell has announced a dramatic overhaul of its sales division, including considerable layoffs, according to an internal memo.
Dell announced a significant reorganization of its sales division, including substantial layoffs. According to an internal memo reported by Business Insider, this move aims to modernize operations and increase the company’s focus on artificial intelligence (AI).
Centralization and AI Focus:
The reorganization involves centralizing sales teams and creating a new AI-focused sales unit. While Dell has not disclosed the exact number of affected employees, reports estimate that approximately 12,500 individuals, or about 10% of Dell’s workforce, could be impacted.
Senior executives Bill Scannell and John Byrne sent the internal memo titled “Global Sales Modernization Update.” The executives outlined the company’s plan to streamline management layers and reprioritize investments. “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest,” they wrote.
Impact on Top Employees:
The layoffs have primarily affected managers and senior managers, including some with over two decades of experience at Dell. Multiple employees from Dell’s sales division reported being laid off or knowing colleagues who were affected.
The layoffs also impacted the marketing and operations departments. According to a source, “It was mostly managers, directors, and VPs. They also hit marketing and operations. They combined organizations and also made the ratio higher for the managers. Now, every manager has a minimum of 15 employees.”
Employee Sentiment:
The layoffs have caused employees to worry about job security and career advancement within the company. One employee remarked, “Several managers who have been here long ago got let go. It just kind of shows you that it doesn’t matter how much effort you put into this job. As soon as it helps their bottom line, you’re gone.”
Dell has consistently reduced its workforce, decreasing from 130,000 to approximately 120,000 employees since February 2023. An employee noted, “Every six months, we have layoffs. There are no opportunities to move up. I have been looking for a new job outside Dell for nine months.”
