Read the memo Dell sent to staff about ‘getting leaner’ as more jobs get cut

Dell has announced changes aimed at “modernization.”

Dell is laying off thousands of workers as part of a major reorganization of its sales teams to prepare for an AI world.

On Monday, executives sent a series of memos announcing changes the IT giant was making on its “modernization journey.”

As part of the restructuring, workers were told that Dell would be “getting leaner” and “streamlining layers of management.”

It also initiated the first of what people within the company said they believed would be a series of job cuts.

One laid-off sales worker told B-17 that 65 colleagues from their team were let go on Monday.

Two Dell employees in human resources told B-17 that the layoffs would bring the workforce to under 100,000 people, meaning tens of thousands of staff would be let go.

A pair of sales execs, Bill Scannell and John Byrne, laid out the plans in a memo to sales-division staff, which was seen by B-17.

A new global sales organizational structure and operating model was being created, the two leaders said. They added that teams would merge and tools would be introduced to “free up” time for sales teams to focus on selling.

An AI-focused sales unit to help drive growth is also being set up, they said.

Read key extracts from the memo sent to sales staff below:

Team,

Almost a year ago, we kicked off our Modern Dell efforts across the company to simplify how we operate and reimagine work and customer experiences with AI. For go-to-market teams, we designed an integrated strategy to drive even more customer and partner satisfaction, create new opportunities, redefine what’s possible and set the stage for winning over the next 40 years.We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually, or in person, to unlock the value of modern IT and AI for their organizations. For our sales teams, we’re working to free your time to spend more of it learning and selling. When you spend more time with customers and partners, you know them better, engage further, win more and drive even better outcomes.

Why modernize:

• Massive Opportunity: We have a $2.1 trillion total addressable market*, including emerging sectors like AI, and we are committed to capitalize on these opportunities.

• Modern Customer Expectations: Customers expect a modern and distinctive experience. We’ll engage on their terms — whether in-person, online, or through self-service.

• Buyer Landscape Changing: Decision makers are expanding into the functions and business units, requiring us to rethink how we cover our customers.

• Modern Seller Expectations: We must free up TIME to enable you to spend it on you most important work — SELLING!

We are starting from a position of strength: We have leading end-to-end solutions, a world-class supply chain, unmatched Global Services, and unparalleled customer reach with the largest GTM engine in the industry — giving us unstoppable differentiation in the marketplace.To build on our strengths, realize our vision, and empower you to sell and win, today we are announcing a new Global Sales organizational structure and operating model.…One sales team, structure & cultureWe’re taking a big step toward centralizing sales into one organization as the Consumer and Small Business (CSB) and Client Solution Group (CSG) sales teams join Global Sales.….Segmentation and coverageTo simplify how we classify and cover customer, we have:

• Consolidated accounts into fewer segments of similar size.

• Tightened account executive-to-account ratios across each customer segment with a more integrated and effective Inside Sales-led motion.

Winning in AI

The world of AI is moving fast, and we are expanding our AI GTM capability.

• We are standing up a new AI Select Sales team, led by Scott Millard reporting to John, to lead AI pursuits for select accounts in close collaboration with the product, marketing and services teams.

• Kyle Dufresne and the AI Solutions Sales team will continue to support the GTM teams driving enablement and broad AI opportunities.

Leaders will hold meetings in the coming weeks to ensure you understand the approach and what it means for you and Dell Technologies.Through all of this, we are getting leaner. We’re streamlining layers of management and reprioritizing where we invest. We don’t do this lightly as we know these changes impact people and our teams.As we simplify, standardize and focus — and become a more modern organization — we’ll extend our lead as the world’s best go-to-market sales team. We have a winning strategy to propel our growth. It’s a journey, and we’ll adjust as we go.The destination is going to be worth it — it’s about winning and winning big!

Good selling,Bill and John

Bill Scannell , President, Global Sales & Customer Operations

John Byrne, President, Sales, Global regions, Dell Tech Select