Dell Technologies have announced the second round of lay-off in the past 15 months and fired out 12500 employees so far with better severance pay which is 10 percent of its total workforce.
The reason for this action is identified as a strategy to reduce the investment on laborers’ incentive and invest it over the Artificial Intelligence and Modern IT solutions. The register reports approximately 12500 employees were let go so far from the two-round of lay-offs
The Lay-offs are a part of Companies reorganization prioritizing Artificial intelligence and Advanced IT solutions . Dell aims to overtake Market growth with the aid of AI to provide better value to Customers.
The announcement was communicated through a Memo by Bill Scannell and John Byrne President of Global sales and Customers Operations and President of Global Channels respectively . They signifies the need of smoothening the layers of Management and emphasized most painful but important steps to drive future growth of lay-offing employees .The announcement was communicated through a Memo by Bill Scannell and John Byrne President of Global sales and Customers Operations and President of Global Channels respectively . They signifies the need of smoothening the layers of Management and emphasized most painful but important steps to drive future growth of lay-offing employees .Employees were informed about the fire out through HR exit meeting
Impacts of the Lay-offs
Fired out Employees are provided with two months wages and additional week per year of services for a maximum of 26 weeks .However there is discontent among Senior employees about the loss of incentives and stock options. The consecutive lay-offs are a continuation of the past fiscal year 2023-24 , where totally 13000 employees were fired. Some employees were notified about the Cut before the official announcement from the recent budget Reduction and cancellation of Projects. The Dell Companies’ decision to call back employees, to work remotely also emphasizes the reduction of Staffs. Dells current workforce is expected to fall below 100000 from 120000.
