New Delhi: Dell Technologies has initiated a significant restructuring effort focused on integrating artificial intelligence (AI) across its operations, leading to what may be the largest round of layoffs in the companys history. The workforce reductions, which began this week, are expected to continue throughout the quarter, impacting multiple departments within the organization.AI-Driven transformation and workforce reductionAs part of its new AI strategy, which has been under internal testing since October 2023, Dell aims to streamline its operations and enhance staff efficiency. Vivek Mohindra, Senior Vice President of Corporate Strategy, explained that AI tools would allow employees to focus on more critical tasks, thus justifying the workforce reduction. According to internal sources, Dell is targeting a workforce of under 100,000 employees, down from approximately 120,000 full-time staff reported in May. However, these numbers have not been officially confirmed by Dell.Employee reactions to layoffsThe layoffs have created a tense atmosphere within the company, with employees anxiously awaiting potential job cuts. A sales support employee described the situation as horrible for morale, while another likened it to a dumpster fire. Despite understanding the business rationale behind the restructuring, many employees are concerned about its impact on team dynamics and overall morale.Long-term strategy amid financial challengesDells restructuring comes when the companys valuation has dropped to just over $64 billion. The company increasingly relies on AI to drive efficiency, particularly in sales and marketing, where external sales channels with stronger customer relationships are being leveraged. While some employees see the layoffs as an inevitable consequence of technological advancement, others remain apprehensive about the future.
