Dell Lays Off Employees, Emphasizes AI

In response to shifting industry trends, Dell has initiated a restructuring of its global workforce, including layoffs impacting sales staff and managerial positions. In an internal memo, executives Bill Scannell and John Byrne acknowledged the changes: "We are getting leaner. We're streamlining layers of management and reprioritizing where we invest."

Austin-based Dell, mirroring actions taken by other tech giants, has not disclosed the total number of layoffs. However, estimates from employees on social media [1] suggest a worldwide impact of potentially 10,000 jobs. This downsizing continues a pattern, with SEC filings showing a nearly 10% decrease in global employees between February 2023 and February 2024.

The company intends to refocus its efforts on artificial intelligence, joining the likes of Meta and Tesla in betting on AI as the future of tech profitability.

Tech Layoffs Hit Austin Hard

Dell's layoffs are among a wave of job cuts across the tech industry this year. Austin-based or -adjacent companies making similar moves include Google, Unity, VMware, Expedia, and Tesla—the latter slashing 10% of its global workforce.

These cutting measures come despite AI's questionable ROI, underscoring the faith large corporations are placing in its future potential.

References

1. https://www.reddit.com/r/Austin/comments/1ekwl3n/layoffs_at_dell_today/