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Dell Technologies confirmed recent cuts across its workforce as the company reorganizes to become "leaner."
This follows recent news of partner company Intel's plans to shed over 15% of its headcount by the end of 2024.
The overview
Rumors of the layoffs began on social media, with several users identifying as Dell employees claiming to be laid off on Aug. 5.
These cuts were confirmed by a Dell spokesperson who explained the reorganization would affect "go-to-market teams," but declined to provide further information about how many Austin-area employees may be impacted.
"We are combining teams and prioritizing where we invest across the company," the company said in a statement. "We continually evolve our business so we’re set up to deliver the best innovation, value and service to our customers and partners."
The context
Layoffs are nothing new for the technology giant, which has implemented a series of cost-cutting measures in the past year.
According to filings with the Securities and Exchange Commission, the company let go around 13,000 employees in 2023, or about 10% of its global workforce.
The cuts also follow a general trend of down-sizing within the technology industry, with over 4,000 layoffs reported in Austin alone this year.
In other news
In an Aug. 1 memo to Intel employees, CEO Pat Gelsinger said the semiconductor manufacturer would implement cost-cutting measures following disappointing returns on AI investments.
Both Intel and Dell have announced various collaborations on AI technology in 2024.
Intel did not immediately respond to a request for comment on whether both companies' layoff announcements were related.
