Dell is set to lay off employees as part of a sales team reorganization, with a new focus on an AI-centered unit.

Dell Technologies Inc. is undergoing a reorganization of its sales teams, which includes job cuts and the creation of a new team focused on artificial intelligence (AI) products and services. In a memo to employees, sales executives Bill Scannell and John Byrne mentioned that the company is "getting leaner" by streamlining management layers and shifting investment priorities. This reorganization also involves changes in how Dell approaches data center sales.

The Texas-based tech company has seen renewed interest from investors over the past year, largely due to its high-performance servers capable of handling AI workloads. However, there is growing concern about how long it will take for companies to see returns on their AI investments, which often require costly servers or graphics processing units (GPUs).

A spokesperson for Dell declined to specify the number of jobs affected but emphasized that the company is becoming more streamlined through the reorganization of its go-to-market teams and other ongoing efforts. Despite a 34% increase in shares this year, Dell's stock had dropped over 40% since reaching a record high of $179.21 on May 29.

Earlier in 2023, Dell announced a major workforce reduction, cutting 13,000 jobs. As of February, the company reported having approximately 120,000 full-time employees worldwide. Dell's core business of selling personal computers has faced challenges due to a decline in the market after the pandemic, although there are signs of recovery in computer shipments, and the company remains optimistic about future growth.