Dell to Restructure Marketing Team and Plans to Lay Off 12,500 Employees to Cut Expenses

Last week, Intel announced layoffs within its sales and R&D departments, affecting 15% of its total workforce, which means around 16,000 Intel employees are facing job cuts.

This week, computer and server manufacturer Dell has also announced layoffs, stating the company is moving towards streamlining by restructuring its marketing team, reducing the total number of employees, and cutting expenses to allocate funds to other worthy investments.

Dell has not disclosed how many employees will be affected by this restructuring and layoffs, but estimates suggest that about 12,500 employees will be laid off. These employees will receive a decent severance package, including two months' salary, the previous year's salary, and an additional week's salary.

In addition to regular severance pay, Dell also plans to offer laid-off employees a portion of their bonuses. However, some Dell employees have complained about losing compensation for long-term incentives such as stock options, which is not an insignificant loss for them.

After this restructuring, Dell will focus more on sales of products and services based on artificial intelligence, including various servers suitable for the AI field, while personal computers and similar products are expected to gradually become ancillary, no longer being Dell's main focus.

Although layoffs are detrimental to Dell employees, some investors were hoping to see Dell undertake layoffs and restructuring. Over the past few days, Dell's stock price has seen a cumulative drop of 22%, but the announcement of the restructuring has not stimulated an estimated increase in Dell's stock value.