Dell Laying Off 12500 Jobs

Dell Technologies is laying off 12,500 employees around 10% of its workforce marking the second significant job cut in 15 months.

This move is part of Dell's strategy to focus on Artificial Intelligence (AI) and modern IT solutions.

The company aims to streamline operations and prioritize investments that will drive future growth. 

The layoffs communicated through a memo by executives Bill Scannell and John Byrne emphasized the necessity of reducing management layers to foster growth.

Affected employees are being offered severance packages though there is discontent regarding the loss of incentives and stock options. 

This reduction follows a previous layoff of 13,000 employees in the 2023 fiscal year and a policy reversal that ended remote work.

With these layoffs Dell's workforce is expected to decrease to below 100,000 from a previous 120,000. 

The company's restructuring aims to leverage AI to create new value for its customers and outpace market growth.