AUSTIN, Texas — After reports of thousands of layoffs, Round Rock-based Dell Technologies confirmed to KVUE on Tuesday job cuts are coming to certain departments.
A company spokesperson did not confirm the number of layoffs, but said in a statement:
"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."
According to Bloomberg, the company sent a memo to employees on Monday, Aug. 5, announcing the layoffs and a focus on restructuring around artificial intelligence (AI). Dell reportedly told employees it plans to streamline its “layers of management” and build “a new group focused on artificial intelligence products and services.”
Bloomberg said investments in Dell surged to a record high earlier this year, fueled by excitement for AI prospects. The company’s high-powered servers can handle heavy AI workloads.
The layoffs come after Dell cut 13,000 jobs in the 2023 fiscal year, according to the report. Dell said those layoffs were due to a drop in sales for hardware like personal computers.