Dell confirmed that it has undergone another round of layoffs, affecting 10% of its workforce or around 12,500 employees.

The company also revealed its plans to focus on exploring modern IT and investing in AI product development in the future.

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Dell Restructures Company With Another Layoff

In an internal memo sent to employees, Dell revealed that it is streamlining its management and reprioritizing its investment. It is estimated that around 12,500 employees will vacate their positions this week.

"We are combining teams and prioritizing 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 executives explained in the memo.

Most of the affected employees are part of the sales and marketing teams. It is reported that the company has laid off around 24,500 staff within 15 months.

The company removed 13,000 staff from the previous fiscal year and added another round of layoff last February.

Dell Expresses Interest in AI Development, Modern IT

Bill Scannell, president of global sales and customer operations at Dell, and John Byrne, president of global channels, detailed that the restructuring is needed to make the company grow faster.

The executives also revealed the company's plan to unlock "the value of modern IT and AI" for customer organizations.

An employee revealed to Business Insider that most of the laid-off positions are managers, directors, and VPs. There are also vacancies in the marketing and operations department. Every manager has now at least 15 employees under them.

Dell confirmed that it is working on a series of actions to streamline its operations. The company also hinted at the possible benefits of such changes, including layoffs, in the company's future.

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