Mass layoffs at Dell: Excessive demands in the HR department
Dell is downsizing significantly. Apparently 10 percent or 12,500 employees have to go.
(Image: Dell)
New year, new mass layoffs at Dell. The company is not officially naming the number of people affected, but it is rumored to be around 12,500. According to documents submitted to the US Securities and Exchange Commission, Dell employed around 120,000 people at the beginning of February 2024. The layoffs would therefore represent a good 10 percent of the workforce.
In a statement to The Register, Dell writes:
"Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. 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"
The Bloomberg news agency also quotes from an internal memo, which states: "We are streamlining management levels and reprioritizing where we invest."
The HR department couldn't keep up
In the USA, the platform The Layoff is a popular point of contact for discussions between those affected by layoffs. More and more people are saying that Dell's HR department was hopelessly overwhelmed during the talks. Apparently, Dell wanted to complete the redundancy talks in one day.
In the past fiscal year (from February 2023 to the end of January 2024), Dell already laid off around 13,000 employees. At the beginning of 2023, the company held out the prospect of 6,000 job cuts, which ultimately more than doubled.
On the stock market, Dell was one of the beneficiaries of the AI hype this year because the company also manufactures servers with Nvidia's AI accelerators. In 2024 alone, the share value rose from 70 euros to a company-internal record value of almost 160 euros. Since the announcement of the latest business figures, however, the share price has fallen again. There, the management admitted that Dell is currently making a loss with AI servers. The share is currently trading at around 85 euros.
(mma)
