Dell Lays Off 10% of its Employees Following its Shift to AI PARAPHRASE THIS

Dell has reportedly laid off over 12,500 employees, representing about 10% of its workforce, as the company shifts its focus to Artificial Intelligence (AI). For years, there has been speculation that AI would replace humans in various roles, and that prediction is now being realized. According to a report from Business Insider, Dell has been testing AI tools internally since October 2023 and is now fully implementing its AI strategy across areas like product development, content management, sales, and customer service. These AI tools are designed to increase efficiency and allow employees to focus on more critical tasks, explained corporate strategy SVP Vivek Mohindra.

An employee shared concerns about the impact on morale, predicting a significant downturn until the next "Tell Dell" survey or the release of third-quarter earnings. The situation has been likened to "burning the boats," with another source describing it as "a bit of a dumpster fire." Internal sources, who spoke to Business Insider under the condition of anonymity, revealed that Dell plans to reduce its workforce to below 100,000 employees, down from the approximately 120,000 full-time staff reported in May. However, these figures have not been officially confirmed by Dell. A Dell spokesperson stated that the company is becoming leaner through a reorganisation of its go-to-market teams and ongoing initiatives. A laid-off sales employee mentioned that they would prefer to be let go with a severance package rather than resigning.