Dell cuts 10% of workforce in August 2024 amid shift to AI

What’s going on at Dell?

Dell employees have reported another layoff at the tech company citing a move to create a new AI-focused sales unit. The cuts total approximately 12,500 employees globally.

The layoffs have impacted the sales divisions of the company, focusing largely on management and senior management positions, as reported by Business Insider.

Official statements and context

The company detailed the changes internally as a “Global Sales Modernization Update” aiming to consolidate their sales divisions and refocus on AI strategies.

• Dell restructures sales division, cuts 10% of staff as part of its “modernization.”
• Change said to impact managers and senior managers most.
• More cuts anticipated as Dell continues to implement their AI strategy.

Impact on Canadian staff

It remains unclear if the workforce reduction at Dell will affect Canadian employees.

According to the company’s LinkedIn page, it has over 10,000 workers in the country.

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Next steps for Dell employees

If you’ve been affected by the layoffs at Dell, understanding your legal rights is crucial.

Non-unionized employees in Canada’s technology sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Dell isn’t the only major employer trimming its headcount as 2024 draws to a close.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Dell, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.