Dell Technologies headquarters in Round Rock, Texas. (file photo)
Dell Technologies Inc. is cutting jobs as part of a reorganization of its sales teams, including a new group focused on artificial intelligence products and services.
“We’re getting leaner,” sales managers Bill Scannell and John Byrne wrote in a memo to Dell employees on Monday. “We are streamlining the management layers and reprioritizing where we invest.” In addition to the AI-focused team, executives said the company will change the way it approaches data center sales.
The Texas-based hardware technology company has experienced a resurgence in investor interest over the past year thanks to its powerful servers that can run AI workloads. Yet there is growing concern about how long it may take for companies to see results from AI investments, which often come in the form of expensive servers or graphics processing units.
A spokesperson did not want to say how many jobs were involved. “Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company,” the spokesperson said.
Shares were up 34% this year through Friday’s close, although the stock had given back more than 40% of its value since hitting a record high of $179.21 on May 29.
Dell previously announced a major workforce reduction in early 2023, resulting in the loss of 13,000 jobs in that fiscal year. As of February, it had about 120,000 full-time employees worldwide, Dell said in a filing with the regulator that month.
The company’s best-known business, selling personal computers, has struggled in recent years amid a post-pandemic decline in that market. Still, computer industry shipments are starting to pick up again, and Dell is optimistic that a new generation of AI-optimized PCs will drive upgrades.
“We 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,” Dell executives wrote in the memo to employees .
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