Dice News previously reported that as many as 9,000 Dell employees could get the boot, including 20 percent of its U.S. marketing and sales force. The Reg, however, says all departments will be hit with layoffs, including engineering. The Round Rock, Texas-based company has not confirmed the layoff reports.
The Register, meanwhile, says it has seen internal emails referring to “simplifying client support structure — both basic and up sell,” “client support structure combined – Consumer and Commercial come under one umbrella,” and “Up sell offers will align with Pro Support and will evolve.”
Founder Michael Dell is trying to re-focus the company on enterprise-related services including cloud and mobile systems. As part of the revamp, he’s reorganized Dell into four groups: End User Computing, Enterprise, Software, Services. The company’s also boosting spending on research and development.
That means workers in its legacy businesses could be at risk. PC companies sold 10 percent fewer units in 2013 than they did during 2012, according to IDC. And HP eclipsed Dell in the worldwide server market in the fourth quarter, when Dell’s shipments dropped by 5.4 percent.
Last week, Dell announced a partnership with Cumulus Networks to deliver Linux-based, bare-metal networking devices to businesses. The devices are expected to help businesses save money by freeing them from tightly integrated network stacks from a single vendor.