is implementing a major organizational restructuring that requires vice presidents and above to manage at least 15 direct reports, while directors and senior managers must oversee teams of 20 people, according to information obtained by Business Insider.
The technology giant is flattening its organizational structure and reducing management layers in an effort to accelerate decision-making in what it calls "today's AI-driven world." The changes began rolling out across divisions throughout April.
"We continually evolve our business so we're set up to deliver the best innovation, value and service to our customers and partners," a Dell spokesperson told Business Insider. "This includes redefining how work gets done, with a flatter structure and fewer management layers so we can move faster."
Dell is dismissing and demoting some managers
The restructuring has resulted in some managers being dismissed, while others have been reclassified from management positions to individual contributor roles, which carry no direct reports. One Dell employee, speaking anonymously, described the new approach as "flatter, leaner, and more with less."
This management overhaul is part of Dell's broader strategic evolution. The company has reduced its workforce by approximately 25,000 over the past two years, bringing its global employee count to around 108,000. In August 2024, Dell also restructured its sales division to prepare for "the world of AI," which included additional layoffs.
In January, Dell eliminated its hybrid work policy, requiring employees to return to the office five days a week starting in March—despite having maintained a hybrid work culture for more than a decade before the pandemic.
As Dell marked its 41st anniversary recently, CEO Michael Dell wrote on X that "the next 41 will be even bigger and more fun," adding that the company would be powered by AI.