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Tech's Terrifying Trend: Dell Downsizes, Adding to Austin's Anxiety

Yet another day, yet another tech titan touts terrifying layoffs. This time, it's the Austin-born tech leader Dell, following in the footsteps of so many other companies in our industry that have chosen to betray their employees in their pursuit of profit. In a memo to employees, Dell unveiled its plan to "get leaner" (aka fire people) by downsizing its sales staff and trimming managerial positions. The company, based in Round Rock, claims it wants to "streamline" and "reprioritize," but we all know what that really means.

"We are getting leaner. We're streamlining layers of management and reprioritizing where we invest,"

• senior executives Bill Scannell and John Byrne, in an internal email reported by Business Insider.

Dell's decision to throw people out on the street has, of course, already sparked panic on social media, with even longtime employees taking to platforms like Reddit to confirm the worst. https://www.reddit.com/r/Austin/comments/1ekwl3n/layoffs_at_dell_today/ Some estimate that worldwide layoffs at Dell could total a staggering 10,000. That's 10,000 lives impacted, 10,000 families affected, and all for what? So a few rich executives can stay cozy in their corner offices.

This isn't the first time Dell has chosen profits over people. In a filing with the Securities and Exchange Commission, the tech giant revealed a nearly 10% decrease in its global employee headcount from February 2023 to February 2024. And they're not alone in their greed. Google, Unity, VMware, and Expedia have all announced Austin-based layoffs this year. It's a trend that is devastating our city and leaving once-loyal employees out in the cold.

Intel, a close partner of Dell, added 15,000 souls to the unemployed recently, and even Austin's biggest company, Tesla, slimmed its workforce by 10% this year. It seems that these companies, including Dell, are all drinking the AI Kool-Aid, insisting that this "transition stage" will somehow save them. Well, I hope the bet pays off for these heartless corporations, because they're ruining lives in the meantime.

The author, Beck Andrew Salgado, covers the trending topics that matter in Austin's business world. Don't let these companies silence your struggles. Contact Salgado at Bsalgado@gannett.com to share your story.