Dell is going to implement a new round of layoffs in an effort to ‘streamline’ its management layers.
The reorganization is expected to cost 12,500 employees their jobs, mainly in sales and marketing functions. Last fiscal year, 13,000 jobs were already cut.
Reports indicate that the focus is on AI services as the company seeks to become more efficient and has initially been unable to enter the market.
Is the AI bubble bursting?
“Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritizing where we invest within the company. We are continually evolving our business so we are positioned to deliver the best innovation, value and service to our customers and partners,” Dell said. The register.
Dell is reportedly looking to unlock the “value of modern IT and AI” by attempting to grow faster than the market, despite recent struggles, with share prices recently falling after results showed its AI servers were selling at “near zero margins.”
There is still significant revenue to be made by the big investors in artificial intelligence, and Dell is not the only company whose stock reflects this, as it has Intel’s recent plan Cut 15,000 jobs.
Dell employees appear optimistic about the company’s future, according to an anonymous source. colleague saying: “Given the frequency of the layoffs, I can’t be confident that there won’t be more in the future. I’ve survived so far, but almost half my team is gone now, compared to two years ago.”
The rise of AI is becoming increasingly uncertain, with many employees and employers concerned about the potential implications for their future. Questions have been raised about whether the ‘AI bubble’ has burst, with an undeniable hype around the technology delivering disappointing results.