Dell mandates in-office work for global sales team after laying off over 12,000 employees: Report

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

The tech giant's decision aims to foster a more collaborative environment and enhance skill development among its sales force. The memo emphasised the importance of in-person work, stating, “Working remotely should be the exception rather than the routine,” as quoted by Bloomberg.

Field representatives are expected to divide their time between customer and partner interactions and office presence, totalling five days a week. This marks an increase from the previous three-day in-office requirement, per the report.

However, the company has made provisions for certain employees, noting, “Remote sales team members who can't go into a Dell office should continue to work remotely,” Bloomberg reported. Dell has promised to provide additional information regarding remote workers shortly.

In August, Dell announced a significant restructuring of its sales division, including layoffs, as part of its efforts to streamline operations and prioritise 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 disclosed the exact number of employees affected, estimates suggest that around 12,500 workers, representing roughly 10% of the company's total workforce, may be impacted, according to a report from Newsbyte.

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

In a similar vein, e-commerce giant Amazon recently announced plans to require employees to work from company offices five days a week starting next year, a stricter policy compared to their previous three-day mandate.

Business scenario

Dell has recently faced challenges in its core personal computer business, which has not rebounded as strongly as expected following a prolonged downturn. The tech giant's latest financial report, released on August 30, revealed a decline in revenue for its fiscal second quarter. The company posted $12.4 billion in revenue, representing a 4% decrease compared to the same period in the previous year and falling slightly short of 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 experienced a significant downturn, with revenue plummeting by 22 per cent year-on-year.

In response to these financial headwinds, Dell signalled its intention to implement strategic cost-cutting measures in a regulatory filing submitted on September 11.

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