Want to Use AI, Dell Fires 12,500 Employees!

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Dell recently underwent a significant overhaul of its sales division, resulting in the layoff of approximately 12,500 employees, or 10% of its global workforce.


The decision, as outlined in an internal memo on August 6, aims to modernize operations and emphasize the company's focus on artificial intelligence (AI).


The memo, circulated by Senior Executives Bill Scannell and John Byrne, explained the need to centralize the sales team and establish a new AI-based sales unit.


Reorganization involves improving the quality of management and prioritizing investments, with an emphasis on operations towards more efficiency.


The layoffs also affect managers and senior managers, some of whom have served for more than two decades.


These changes have caused frustration and insecurity among employees, with some reporting limited career development opportunities and the need to seek employment outside of Dell.


Despite the challenges, Dell's leadership remains optimistic about the future. The memo ends on a hopeful note, stating that the ultimate goal is to achieve significant success through these transformative steps.


Although the journey has been difficult, executives believe that the actions taken will be worth it as the company aims to grow big in the future in the ever-evolving technology landscape.