Dell Technologies Announces Another Round of Layoffs.

Dell Technologies has announced a second round of layoffs within the past 15 months, letting go of around 12,500 employees. Affected employees are being offered severance packages that include two months' wages plus an additional week of pay for each year of service.

The recent layoffs represent about 10 percent of Dell's workforce and are part of the company's strategy to better focus on Artificial Intelligence (AI) and modern IT solutions. This move aims to streamline operations and prioritize investments in areas that will drive future growth.

The decision to lay off thousands of employees was communicated through a memo by Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President. They emphasized the need to "streamline layers of management" and mentioned that these painful steps are necessary for the company's future growth. Employees were notified of the layoffs through HR exit meetings, with some finding out through rescheduled one-on-one meetings.

Despite the severance packages, there has been dissatisfaction among long-term employees over the loss of incentives and stock options. Some employees anticipated the cuts, noting recent budget reductions and canceled projects.

This round of layoffs continues a trend of workforce reductions at Dell, including a significant reduction of around 13,000 employees in the 2023 fiscal year. Last year, the company also reversed a previous remote-work policy by calling employees back to the office, a move seen as a way to reduce staff. With the current layoffs, Dell's workforce is expected to fall below 100,000, down from 120,000.