Roome Mishra
Has AI started taking away jobs? Tech giant Dell cuts staff to use AI for easier and more fulfilling work. Major layoffs cause concern to techies. Dell is a US-based computer manufacturer. The company has announced it will cut approximately 12,500 jobs in its latest round of layoffs. This follows last year’s reduction of 13,000 positions through two separate rounds of cuts.
Dell cuts staff to use AI: Here’s what the company says
In a statement released Monday afternoon, the company announced it is reducing some sales positions while creating a few new roles to “reorganise its business for the AI era, become leaner, and focus on growth.” The layoffs mainly affected managers and senior managers, some with over 20 years at the company, according to media reports.
Dell executives communicated the layoffs through an internal memo on August 6. The memo, titled “Global Sales Modernisation Update”, was sent by senior executives Bill Scannell and John Byrne. It outlined the Texas-based company’s intentions to “streamline management layers and reprioritise investments”.
“Through a reorganisation of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritising 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,” it said.
As of February, Dell had about 120,000 global employees. Despite challenges in its core PC business post-pandemic, the company remains optimistic that AI-powered devices will spur future growth.
Intel’s layoffs points towards a negative trend in the tech world
There’s a disappointing trend in the tech world. It’s not just Dell. Intel plans to cut 15,000 jobs this year, following last year’s reductions, due to “disappointing revenue growth” and challenges with AI trends, according to CEO Pat Gelsinger.
Additionally, Microsoft also reduced its workforce by about 1,000 in its mixed reality and Azure divisions.
UKG, based in Massachusetts, revealed a 14% reduction in its workforce this month, translating to approximately 2,200 layoffs. Similarly, companies like Intuit, Dyson, and Kaspersky have also announced job cuts. Indian firms, including Unacademy, WayCool, and PocketFM, are also reducing their staff this year.
All these layoffs have caused a massive turmoil in the job industry, leading to unemployment. Several fast food chains have also noted a rise in “overqualified” applicants after the layoffs. In a time of inflation, it has become necessary to be mindful of the need for these jobs.
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