Dell requires office work for global sales team after laying off more than 12,000 employees: report

Dell Technologies has announced a significant change to its employment policy for global sales team employees. According to an internal memo obtained by sources, starting September 30, staff members who can work from the company’s offices will be required to do so five days a week, according to a Bloomberg report.

The technology giant’s decision aims to foster a more collaborative environment and improve skills development among its sales force. The memo emphasized the importance of in-person work, stating, “Working remotely should be the exception and not the routine,” as cited by Bloomberg.

Field representatives are expected to split their time between interactions with clients and partners and an in-office presence, a total of five days a week. This marks an increase from the previous requirement of three days in the office, according to the report.

However, the company has made provisions for certain employees, noting: “Remote sales team members who cannot come to a Dell office should continue to work remotely,” Bloomberg reported. Dell has promised to provide additional information on remote workers soon.

In August, Dell announced a major restructuring of its sales division, including layoffs, as part of its efforts to streamline operations and prioritize artificial intelligence. According to an internal memo sent to staff on August 6, the company said it plans to consolidate its sales teams and establish a new unit focused on AI, Business Insider reported.

While Dell has not revealed the exact number of employees affected, estimates suggest that around 12,500 workers, representing approximately 10% of the company’s total workforce, could be affected, according to a report by Newsbyte.

Dell’s move comes amid a broader trend of technology companies reevaluating their remote work policies established during the COVID-19 pandemic. While many companies have adopted hybrid models, some are pushing for a more substantial office presence.

Similarly, e-commerce giant Amazon It recently announced plans to require employees to work from the company’s offices five days a week starting next year, a stricter policy compared to its previous three-day mandate.

Business scenario

Dell has recently faced challenges in its core personal computer business, which has not recovered as strongly as expected after a prolonged crisis. The tech giant’s latest financial report, released on August 30, revealed a decline in revenue for its fiscal second quarter. The company posted revenue of $12.4 billion, down 4% from the same period last year and slightly below market projections.

The report highlighted a stark contrast between Dell’s PC business segments. While sales of business-oriented computers remained relatively stable, the consumer PC division saw a significant slowdown, with revenue falling 22 percent year over year.

In response to these financial obstacles, Dell signaled its intention to implement strategic cost-cutting measures in a regulatory filing filed on September 11.

“We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to take certain steps to reduce costs.”