August 6th, 2024

Dell lays off 12,500 people

Dell has laid off around 12,500 employees, about 10% of its workforce, as part of a reorganization to focus on modern IT and AI solutions, amid industry-wide job cuts.

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Dell lays off 12,500 people

Dell has initiated another round of layoffs, reportedly affecting around 12,500 employees, which is approximately 10% of its workforce. This decision comes as part of a reorganization aimed at streamlining operations and enhancing the company's focus on modern IT and AI solutions. The layoffs have impacted even long-term employees, with HR overwhelmed by the process. Dell's leadership emphasized the need to become a leaner organization to better serve customers and partners. The layoffs coincide with a broader trend in the tech industry, where companies like Intel are also reducing their workforce to manage financial challenges. Employees have expressed concerns about the frequency of layoffs and the company's return-to-office mandate, which some view as a stealth layoff strategy. Severance packages for affected employees are expected to include two months' wages plus additional compensation based on tenure. The layoffs reflect Dell's shift towards engaging more with partners rather than relying heavily on in-house sales teams.

- Dell has laid off approximately 12,500 employees, about 10% of its workforce.

- The layoffs are part of a reorganization to streamline operations and focus on AI and modern IT.

- Employees have raised concerns about the impact of layoffs and the return-to-office mandate.

- Severance packages will include two months' wages and additional compensation based on years of service.

- The layoffs align with broader trends in the tech industry, with other companies also reducing staff.

Link Icon 17 comments
By @bratao - 2 months
Feels like we are about to get a new wave of large layoffs. Things like Intel last week and Berkshire Hathaway sells off... Brace for impact!
By @esel2k - 2 months
Why do recent layoff often need to attach something with AI? Few companies have even found a solid revenue model or recurring paying customers.

I can only guess but saying layoff because of AI sounds better than « layoff » (because of mismanagement)?

By @thebeardisred - 2 months
Wow, this feels like a middle finger on the way out the door:

> Severance for most will likely involve a payout of two months wages plus a week per year served up to a max of 26 weeks

A week per year of service?

By @nolok - 2 months
I assume most of these are salesmen and support people ? It says they have 120k people on staff, but do they have a clearer picture on the various divisions inside ?
By @bfrog - 2 months
Nothing like getting the boot to help fund the next yacht
By @dauertewigkeit - 2 months
US corporations have become so large, they have started to function internally not unlike the fully fledged managed economies of the USSR. A bunch of MBAs acting as petty dictators hiring and firing at will, driven by nothing more than a few financial indicators and their intuition, i.e. they are making it up as they go, just like Stalin and Mao were doing back then.
By @stranded22 - 2 months
So the return to office mandate to decrease staff numbers weren’t enough and avoiding severance pay wasn’t enough then?
By @matt3210 - 2 months
This is all about stock price and sucks to be dell since the price is still falling at this point.
By @Giorgi - 2 months
This gotta be some sort of world record numbers. 3-4 Large factories amount of people.
By @datavirtue - 2 months
Vesting schedules are a damn joke these days. Who stays at a company for five-plus years? People would, but they get run off by extreme boredom, garbage managers and layoffs.

I don't consider anything that requires vesting a positive.

By @subsubzero - 2 months
hey the economy is doing great, what you are feeling is a "vibecession". Don't look at the hundreds of thousands of tech employees fired in the past 2 years.
By @ysofunny - 2 months
kudos for giving out an actual number of humans fired.

instead of the usual, de-humanizing percent of employees usually given

By @mylastattempt - 2 months
Layoffs lead to payoffs. Sorry for those of us who are not within a position of power and are affected by this. It's just another part of the neverending parabolic cycle..