Dell announces sales team layoffs, adopts new partner-driven market approach

Dell has unveiled its strategic plan to enhance its market approach by adopting a partner-driven model. As part of this shift, the company will undergo a reorganisation of its sales teams, which may result in the departure of certain team members. Dell has not explicitly confirmed whether these adjustments are supplementary to the 6,650 job reductions previously announced earlier this year.

According to CRN report, Dell is poised to reshape its sales landscape, with a focus on empowering its direct sales force to promote storage solutions through partner channels. This reimagined model aims to incentivise sales representatives by providing them with enhanced compensation for driving sales in the storage product segment. 

"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.

This development follows the news earlier this year when Dell announced a reduction of its workforce by approximately 5 per cent, resulting in the departure of 6,500 employees. The reshaping of the company's workforce aims to optimise operational efficiency while adapting to the ever-evolving market demands.

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Industry partners have expressed their perspectives on these changes, viewing the workforce adjustments as an opportunity to further align with Dell's vision and amplify sales growth. The restructuring is expected to enable partners to deepen their collaboration with Dell, capitalising on the company's expertise and offerings to drive mutual success.

Coinciding with this transformation, Dell Co-Chief Operating Officer Chuck Whitten recently resigned abruptly, adding a layer of complexity to the company's ongoing strategic adjustments. In the financial report for the first quarter of the fiscal year 2024, Dell revealed a revenue figure of $20.9 billion, marking a 20 per cent decrease, while also generating an operating income of $1.1 billion. 

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