Grey box shifter Dell has embarked on a strategic reorganisation, cutting some sales positions while creating others, as it aims to streamline operations and focus on growth in the AI era.
The company says it wants to become “leaner.”
“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.”
The exact number of job cuts remains undisclosed. Last year, Dell reduced its workforce by 13,000 in two rounds of layoffs, bringing the total headcount down from 133,000 to approximately 120,000.
For the 2024 fiscal year, Dell reported annual sales of $88.4 billion, a 14 per cent decline from the previous year and $13.5 billion less than its record $101.9 billion in 2022. The fiscal year concluded on 2 February 2024.
The second round of layoffs last year coincided with the introduction of a new go-to-market strategy, “Partner First For Storage,” launched in August.
This initiative encourages Dell’s core sellers to channel storage deals through partners, a move praised by CEO Michael Dell and other company leaders for fostering closer relationships with channel partners.
Dell’s chief partner officer, Denise Millard, spoke about the reorganisation’s benefits for the company and its partners, highlighting a $2 trillion-plus market opportunity. “As we have grown over the years, we have had various organisations that needed to be brought together to promote better and faster collaboration,” Millard said.
“We have different selling organisations sitting in different areas. Pockets of marketing. Pockets of services. What we have done as part of what’s happening starting today is we are streamlining all of that.”
Millard emphasised the transformative impact of generative AI on technology environments and the evolving purchasing behaviours of informed buyers. “They’re looking to do business with partners who can help them unlock the value to modern IT and AI,” she said.
