Dell Technologies will lay off certain employees from its sales teams as part the company’s new strategy for market development driven by partners. Dell has yet to clarify if these layoffs were an addition or a part to the reduction in employment of 6,650 it announced earlier in the year. Dell however, has confirmed that it “will eliminate jobs from its sales teams that are core to the company as it implements a new partner-led model, which will pay its direct sales team more to market storage products via its channel partners,” reports CRN.
“Some members of our sales team will leave the company. We don’t make these decisions lightly, and we’ll support those impacted as they transition to their next opportunity,” a Dell spokesperson was quoted as saying. “We’re always assessing our business to remain competitive and ensure we’re set up to deliver the best innovation, value, and service to our customers and partners,” the spokesperson added.
In February, Dell laid off 6,500 employees or approximately 5 percent of the then-133,000-strong workforce. Partners were quoted as saying that they see the layoffs “as a chance to double down on Dell and drive sales growth”. The new round of job cuts came just two weeks after Dell Co-COO Chuck Whitten resigned abruptly, according to the report.
In its financial results for its fiscal 2024 first quarter, Dell reported revenue of $20.9 billion, down 20 percent, and generated operating income of $1.1 billion. “We executed well against a challenging economic backdrop. We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors,” Whitten had said.
