Last updated on August 29th, 2024 at 05:42 pm
Dell Technologies Inc. is overhauling its sales forces in a significant way and is putting an intense spotlight on products and services related to artificial intelligence. This also fits into the strategy to reorganize internal operations and better align with the shifting dynamics of the market.
Sales Team Restructuring:
In a Monday memo to staff, Dell sales executives Bill Scannell and John Byrne announced the plan to “get leaner” by shaving off some layers of management and redeploying resources. The makeup of the organization includes a dedicated team focused on AI solutions, showing how imperative AI has become to the business strategy.
AI-Centric Focus:
Dell’s new AI-focused group will be integral to the company’s go-to-market strategy and, in major ways, when it approaches data center sales. The Texas-based tech giant has enjoyed renewed investor interest over the last year, largely thanks to its high-end servers that can handle AI workloads. For most investors, though, concern is building on the timeline of returns on these AI investments since AI infrastructure, like servers and GPUs, is pretty expensive.
Workforce Impact
For the exact number of layoffs, no figures have been given, but in response to the same, the company spokesperson said this reorganization is about being leaner. The ramp-down follows one of the most significant layoffs by the company when it laid off 13,000 jobs in early 2023. As of February, Dell boasted some 120,000 full-time employees worldwide.
Market Performance and Outlook:
Dell’s stock is up 34% this year after having tumbled by more than 40% from its $179.21 peak reached on May 29. The company’s core PC business has struggled to regain its footing in the post-pandemic market, but the latest data suggests computer shipments may be rebounding. Dell still expects AI-optimized PCs to fuel upgrades and broader market growth in the future.