Dell decided to become more compact and announced the dismissal of 12,500 employees

This week, Dell Technologies announced that the company was “becoming leaner,” and divisional leaders informed thousands of employees that they were beginning work to “optimize management levels.” The report said that as a result of these activities, 12,500 employees will leave the company.

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Dell’s president of global sales and customer engagement, Bill Scannell, and global channel and distribution executive, John Byrne, sent a message to employees saying the company is trying to accelerate growth in the market by focusing on development of “modern IT systems and artificial intelligence”. Dell likely plans to achieve this without about 10% of the workforce that worked at the company before the announcement of the upcoming layoffs. The staff reduction is part of the company’s desire to reduce the number of employees working at Dell to less than 100 thousand people.

The next round of layoffs at Dell was announced just a few days after Intel announced a 15% workforce reduction (about 15 thousand jobs). After this, Intel’s share price fell by 26%, which was also facilitated by confirmation of hardware problems with Raptor Lake processors. As for Dell, last year the company planned to reduce its staff by 5%, but as a result, twice as many employees lost their jobs (about 13 thousand people).