Dell to lay off employees in sales teams amid partner-driven strategy

SAN FRANCISCO: Dell Technologies will lay off some members from its sales teams as part of a new partner-driven market strategy. The company, however, did not confirm if these layoffs are part of or in addition to the 6,650 job cuts it announced earlier this year.

Dell, however, confirmed that it "will cut jobs among its core sales teams as it adopts a new partner-led model that pays its direct sales force more to sell storage products through the channel," reports CRN.

"Some members of our sales team will leave the company. We don't make these decisions lightly, and we'll support those impacted as they transition to their next opportunity," a Dell spokesperson was quoted as saying.

"We're always assessing our business to remain competitive and ensure we’re set up to deliver the best innovation, value and service to our customers and partners," the spokesperson added.

In February, Dell laid off 6,500 employees, or approximately 5 per cent of the then-133,000 strong workforce.

Partners were quoted as saying that they see the layoffs "as a chance to double down on Dell and drive sales growth".

The new round of job cuts came just two weeks after Dell Co-COO Chuck Whitten resigned abruptly, according to the report.

In its financial results for its fiscal 2024 first quarter, Dell reported revenue of $20.9 billion, down 20 per cent and generated operating income of $1.1 billion.

"We executed well against a challenging economic backdrop. We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalising ahead of competitors," Whitten had said.