Dell Makes Cuts to Boost AI Pivot, Reportedly Laying Off 12,500 Employees

From PC Mag: Dell is cutting more staff, its second round of mass layoffs in the past 15 months.

Two Dell sales executives broke the news in an internal memo to employees on Monday, Bloomberg reports. Dell is switching up its sales teams to put a big emphasis on AI products and make changes to how it handles data center sales, which are in demand as AI firms look to train their latest models.

"We are getting leaner," says the internal memo from Dell's Bill Scannell and John Byrne. "We’re streamlining layers of management and reprioritizing where we invest."

In a statement to The Register, Dell said: "We are combining teams and prioritizing where we invest across the company. We continually evolve our business, so we're set up to deliver the best innovation, value, and service to our customers and partners."

While Dell has confirmed the layoffs, it hasn't revealed how many employees are losing their jobs. SiliconAngle reports that roughly 12,500 Dell employees are being laid off this week, citing an unnamed source. Impacted employees are primarily on Dell's sales and marketing teams. A layoff tracker has since reported the same number.

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