Dell Lays Off 10% of its Employees Following its Shift to AI Dell has reportedly laid off more than 12,500 employees due to its recent shift in focus to Artificial Intelligence
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For years, it was only speculated that Artificial Intelligence (AI) will take the place of humans in the workplace, however, that prophecy has come to pass. Major tech company, Dell, has reportedly laid off more than 12,500 or 10 per cent of its employees amid its recent pivot in focus towards Artificial Intelligence (AI). The layoffs come as Dell rolls out its new AI strategy. As per report from Business Insider, Dell has been trialling AI tools internally since October 2023 and is now putting the plan into action, applying AI across product development, content management, sales tools and customer service. The tools will make staff more efficient and free up their time for more important tasks, said corporate strategy SVP Vivek Mohindra.
"This is horrible short-term for morale, I wouldn't be surprised if it's going to be in the dumpsters until the next Tell Dell or until we see third-quarter earnings," an employee told BI. "The analogy being used is 'we're burning the boats,'" quoted another source, adding that the situation was "a bit of a dumpster fire."
As per internal sources speaking to BI on condition of anonymity, Dell aims to reduce its workforce to under 1,00,000 employees, down from approximately 1,20,000 full-time staff reported in May. However, these numbers have not been confirmed by Dell.
"Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company," a Dell spokesperson told BI.
A laid-off sales worker stated that they would rather be let go with a package than quit.
