According to a report by Business Insider, the company plans to centralize the sales team and create a new sales unit focused on artificial intelligence (AI).
"Dream - The computer giant Dell has announced a massive layoff in its sales division. The company informed employees about this change in an internal memo on August 6, 2024. Citing Livemint, the exact number of affected employees has not been officially confirmed, but it is estimated to reach 12,500 people, or about 10% of Dell's workforce, according to a Newsbyte report."
A Dell representative confirmed to Business Insider that the company is undergoing a "series of ongoing actions" to streamline operations. Although the exact number of employees affected by the layoffs was not disclosed, several employees from the sales division reported being laid off or knowing colleagues who were impacted. According to several sources, the layoffs primarily affected managers and senior managers. Some of them have over two decades of experience at the company.
In the company memo titled "Global Sales Modernization Update," sent by senior executives Bill Scannell and John Byrne. The memo outlines the company's intention to streamline management layers and reprioritize investments. "We are getting leaner. We are streamlining management layers and reprioritizing where we invest," the memo states.
"The majority of managers, directors, and VPs. They also handle the marketing and operations sections. They combine organizations and also improve the ratios for managers. Now every manager has at least 15 employees,"
said an employee who wished to remain anonymous to Business Insider.
"Mass layoffs are not surprising at Dell. Previously, the company had reduced its workforce from 130,000 to around 120,000 since February 2023. Some employees reported feeling insecure in their jobs and limited growth opportunities within the company. "Every six months we experience layoffs," said an employee. "There are no opportunities for promotion. I have been looking for a new job outside of Dell for nine months," said the employee."
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