Dell is set to introduce another round of layoffs aimed at ‘streamlining layers of management’.
The reorganisation is set to cost as many as 12,500 workers their jobs, with sales and marketing roles particularly affected, and comes after a similar 13,000 jobs were cut in the previous financial year.
Reports suggest emphasis is being placed on AI services as the company looks to become get more efficient, having missed out on breaking into the market initially.
AI bubble bursting?
“Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritising 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” Dell told The Register.
Dell is reportedly aiming to unlock the ‘value of modern IT and AI’ by attempting to grow faster than the market – despite recent struggles, with shares recently falling after results showing its AI servers sold at ‘near-zero margins’.
Significant revenue is yet to be earnt by the major investors into Artificial Intelligence, and Dell is not the only company whose stock has reflected this, as it follows Intel’s recent plan to slash 15,000 jobs.
Staff at Dell are seem to be than optimistic about the company’s future, with one anonymous employee saying, “With how frequent the layoffs have been I can’t trust there won’t be more in the future. I’ve survived so far but almost half my team is gone now versus two years ago.”
Increasing uncertainty surrounds the rise of AI, with many workers and employers anxious about how it may affect their future. Questions have been asked on whether the ‘AI bubble’ has burst, with an undeniable hype surrounding the technology producing underwhelming results.