What's going on? Dell will carry out further layoffs. This is part of the reorganization Sales Departmentwhich will also create a team focused on trading in AI-based products and services. The company also announces streamlining management processes and changing priorities in terms of investment areas. Dell is also to take a different approach to selling data centers.
Background to the decision: Dell has enjoyed investor interest over the past year due to its ownership efficient servers capable of handling the loads generated by AI algorithms. This a chance to correct the directionwhere the company is heading, most strongly associated with the market computers personal. However, after the pandemic, their sales dropped.
What's happening at Dell? The company has no plans to abandon the sale of personal computers and believes that a new generation of AI-powered devices will drive the industry. But the uncertain situation of Dell and many other technology companies forced mass layoffs in the industry. Dell itself between March 2023 and 2024 it laid off 13,000 people. One former employee called it a “bloodbath.” In February, the company was hiring about 120 thousand employees full time around the world.
Dell Quotes: The company's shares reached a record high at the end of May. 179 dollars. But since then they have almost doubled, to less than 95 dollars on Wednesday, August 7. The last five days have seen a decline of 17.64%. from level 114 dollars. The company cannot complain, however, because despite the declines in recent months Year over year its valuation increased by as much as 40 percent.
More you can read about the problems of the Big Tech industry in our text “Is the AI ​​bubble bursting? “It's a matter of days or weeks, not months”
Read the sources: “Bloomberg”, PC Mag