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  • Paytm’s 4,600 Layoffs in 2025: A Costly Cut or Smart Strategy?

    Layoffs are happening everywhere, and this time it’s not entirely due to AI. Paytm reportedly fired 4,600 in FY25 and says it’s for “sustainable growth and profitability.” About 32,000 employees out of its 39,368 in 2025 work in sales for Paytm, and AI has little to do with layoffs here. The company was facing losses and was frequently in the news due to RBI restrictions on Paytm’s Bank and other legal battles. Therefore, cutting down on its costs seemed reasonable for Paytm. In 2025, Paytm is generating better profits and restructuring its team to focus on ‘digital payments’ and the distribution team. Learn the full story.

    What Are The Reasons For Layoffs?

    Paytm had a total headcount of 43,960 employees in 2024, after layoffs that dropped to 39,368. The company let go of around 4,600 people. The company has been transparent about the cut, and they have done it strategically to save money.

    In April–June 2025 (Q1 FY26), Paytm’s parent company, One 97 Communications, earned a net profit of ₹123 crore. Hitting those profits was essential for the company after facing a massive loss of ₹840 crore in the same quarter last year. The improvement mainly came from cost cuts. It appears the layoffs worked for Paytm, but it was a “tough call,” says CEO Vijay Shekhar Sharma.

    He said, “We took some tough calls, pruned and sold businesses, and doubled down on our core of payments, ensuring the preservation and growth of our cash reserves. This focus towards fundamentals has put us on a clear path toward sustainable growth and profitability.”

    Paytm Also Cuts Employee Costs

    As part of their cost-optimization strategy in FY25, Paytm reportedly reduced 21% of its employee costs, including salaries, hiring, and maintenance expenses. Last year, Paytm’s employee expenses totaled ₹3,124 crore, but this year, the numbers came down to just ₹2,473 crore. Additionally, the company spent only ₹30 crore on employee stock options (ESOPs) this quarter. Overall, Paytm saved a good total of ₹651 crore.

    According to its employee data, about 32,000 people work in sales and distribution, and AI does not impact that part at all. Paytm is also creating a lean employee model, where it embraces technology and productivity. It states it wants to grow its distribution and stick to what it’s known for, ‘digital payments.’

  • Starlink to Store All User Data Locally in India, Says Government

    According to Pemmasani Chandra Sekhar, Minister of State for Communications, Elon Musk’s Starlink satellite internet service will store its network data, traffic, and other information locally in India.

    “Security conditions, among other things, include the establishment of earth station gateway(s) in India for providing satellite-based communication services with no user traffic originating from or destined for India being routed through any gateway located outside India, no copying and decryption of the Indian data outside the country, and the Indian user traffic is not to be mirrored to any system/server located abroad,” the minister wrote in a response to the Rajya Sabha.

    Following Bharti-backed Eutelsat OneWeb and Reliance Jio-SES JV, US-based Starlink is the third satcom operator to obtain all necessary approvals to provide commercial broadband from space services in India. In June, Starlink was granted permission to use Global Mobile Personal Communication via Satellite (GMPCS).

    Starlink’s LEO Satellite Constellation and Capacity in India

    Starlink’s Gen 1 constellation has been approved by the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to offer satellite communication services within the country. The first generation is Starlink’s low Earth orbit (LEO) network, which consists of 4408 satellites and has a 600 Gbps throughput capacity in India.

    Satcom Sector to Drive Employment Growth in India

    According to Pemmasani Chandra Sekhar, the satcom industry is anticipated to provide jobs because it is a developing field. In his response, the minister stated that satellite-based communication services are a developing field that, like any new business venture, is anticipated to create jobs in the nation.

    This is because the services include, among other things, the installation, operation, and maintenance of the telecom network, which includes user terminal equipment.

    Starlink’s Role in Bridging India’s Digital Divide

    Through a network of low Earth orbit (LEO) satellites, SpaceX’s worldwide satellite internet project Starlink aims to provide consumers with direct access to high-speed broadband. By delivering fast and dependable broadband to remote areas like villages and hilly terrain, Starlink’s venture has the potential to transform internet accessibility in India, where the digital divide is still a significant barrier.

    Sekhar had stated that Starlink would provide rates of up to 200 Mbps throughout the nation, according to news agency PTI. “Starlink can only serve 20 lakh customers in India while providing speeds of up to 200 Mbps.” Telecommunications services won’t be impacted. It is anticipated that the regulations governing the distribution of spectrum for satellite communications (satcom) services will shortly be finalised.

    TRAI’s Recommendation on Satcom Spectrum Allocation

    According to the PTI report, the Telecom Regulatory Authority of India (TRAI) has advised administrative distribution of satcom spectrum instead of holding an auction. Furthermore, the regulator has suggested a five-year spectrum allocation period that might be extended by an extra two years depending on the state of the market.

  • Reliance Retail Writes Off INR 1,645 Cr Dunzo Investment Amid Startup Collapse

    All of Reliance Retail’s investments in the now-defunct hyperlocal delivery business Dunzo have been formally wiped off. The conglomerate’s 78,923 equity shares of Dunzo, which were internally valued at INR 1,645 Cr in FY24, were worth nothing during the fiscal year under review, according to Reliance Industries Ltd.’s (RIL) FY25 annual report.

    According to the report, the now-defunct business generated INR 1 Cr in operating revenue in FY25. This comes more than seven months after Reliance Retail, the biggest shareholder in the hyperlocal firm, wrote off its $200 million investment in it, according to various media reports.

    Kabeer Biswas, the CEO and cofounder of Dunzo, left his position that same month to join Flipkart’s Minutes, a fast commerce startup.

    Why Did Reliance Back Dunzo in 2022?

    Three years have passed since Reliance led a $240 million round in Dunzo in January 2022, when the write-off occurred. The venture was marketed at the time as Reliance Retail’s attempt to get into the fast commerce race.

    The agreement was also intended to improve the conglomerate’s omnichannel capabilities and allow hyperlocal logistics for Reliance Retail’s stores. In addition, Dunzo was supposed to assist JioMart’s merchant network with last-mile deliveries.

    At the time of Dunzo’s closure of business operations, 26% of the company was held by Reliance Retail. Lightbox owned 10% of the startup, while Google India owned 19.3%. In 2014, Biswas, Ankur Aggarwal, Dalvir Suri, and Mukund Jha founded Dunzo, a platform that first catered to pick-and-drop services before branching out to grocery delivery.

    Dunzo’s Financial Struggles and Competitive Pressures

    Even though Dunzo has raised around $450 million in its career and accomplished several firsts, its tale took a sharp turn last year when it became apparent that the firm was losing millions of dollars due to very strong competition from players like Blinkit, Instamart, and Zepto.

    In FY23, Dunzo’s overall revenue increased 3X YoY to INR 67.7 Cr, but its consolidated net loss expanded 4X YoY to INR 1,801 Cr. The startup made several unsuccessful pivots as funding dried up. After that, it struggled to continue operating and even had trouble finding a buyer. The startup eventually ceased operations.

    Reliance Bets on AI for Future Growth with JioBrain

    RIL also predicted in the annual report that AI would spur multi-decade growth in small steps. The company reaffirmed that it is creating an AI service platform under the JioBrain brand to provide a range of tools and platforms for businesses as part of its AI drive.

    According to the firm, Jio will work with its international partners and use its knowledge of operations, software, data, networking, and infrastructure to allow the lowest AI inferencing cost in the world in India, enabling AI to be accessible everywhere for everyone.

    Key Figures from RIL’s FY25 Annual Report

    RIL further stated that its telecom subsidiary Reliance Jio is currently testing the AI platform for customer support, resource optimisation, and network planning and maintenance. According to the company, Jio Platforms, its digital arm, has filed more than 3,341 patents so far, including 1,654 in FY25, in the deeptech space.

  • Trump’s 50% Tariff Hits Indian Textiles: Amazon, Walmart To Stop Buying Goods

    As the trade war continues between India and the U.S., Amazon, Walmart, and other big U.S. Retail companies call for a stop in orders from India. On Wednesday (August 6), U.S. President Donald Trump imposed tariffs on products from India by a huge 50%, effective from August 28. India has long been a major exporter of apparel and textiles to the U.S. The total value of these exports was $36.61 billion by March 2025. And now, Indian exporters are receiving calls and emails saying either you bear the costs or we stop buying, until further notice. It’s a massive blow to India, and here’s why.

    Reasons Why American Companies Don’t Want To Import From India

    U.S. President Donald Trump has been attacking India for buying oil from Russia. He pressed (what he thought was ‘punishment’) 25% tariffs on India that took effect on Thursday. When India didn’t budge, he pressed another 25% which now makes a staggering 50% tariffs.

    “I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.” Said the U.S. President Donald Trump.

    What Does 50% Tariff Mean to Indian Textile Exporters?

    It simply means that when American companies buy goods from India, it will cost more (and a 50% tariff is a lot). Notably, about 28% of India’s textile exports go to the U.S. Companies like Walmart, Amazon, Target, and Gap, which buy apparel and textiles from India, are having second thoughts. There are two ways in which American companies look into this:

    • As no giant wants to pay such hefty taxes, they are asking the exporters to bear the extra costs. It’s a far-fetched scenario given that costs for Indian sellers may go up by 30–35%. 
    • The other way around is to stop buying, and unfortunately, it is already happening to the Indian export companies. It will result in a massive order drop of 40–50% from the U.S.

    Indian Companies like Welspun Living, Gokaldas Exports, Indo Count, and Trident are facing the heat because 40-70% of their sales come from the U.S.

    Reportedly, many have received calls and emails asking to stop sending goods for the time being. If this continues, the industry might certainly lose around $4–5 billion.

    Final Thoughts

    India worries about losing its business to other countries like Bangladesh and Vietnam, which have only 20% taxes on their goods going to the U.S. Notably, there’s still time till August 28 to negotiate things. Still, the real question is, will India and the U.S. talk through it?  

  • Crack JEE Main & Advanced with Confidence: ExamPraxis Brings Scientific and Affordable Learning to Every Student

    New Delhi [India], August 8: The Joint Entrance Examination (JEE Main & Advanced) is one of the most competitive and challenging exams in India, opening the doors to prestigious institutions like the IITs, NITs, and IIITs. Each year, over 1.5 million studentscompete in JEE, yet only a small fraction secure top ranks. What often makes the difference is not just talent—but the right strategy, consistent practice, and scientific preparation.

    This is where ExamPraxis comes in—a next-generation JEE exam practice platform that democratizes access to high-quality JEE preparation. Founded by Abhishek Agnihotri, an IIT-BHU alumnus and one of Kota’s top Physics educators and Manoj Sharma SP Jain & ISB Alumnus having 19+ year of experience in management, sales & marketing. ExamPraxis brings together affordable pricing, proven pedagogy, and powerful technology to help students of all backgrounds succeed in JEE Main and Advanced.

    Why Traditional Coaching Falls Short

    Conventional coaching models are often expensive, rigid, and primarily focused on top-performing students, leaving a large segment of aspirants underserved—especially those who require conceptual strengthening, personalized feedback, and stress-free learning. Students from Tier 2 and Tier 3 cities, in particular, face challenges due to limited access and high costs.

    ExamPraxis breaks this barrier by offering a complete, student-first learning model that is affordable (just ₹499/month), scientifically structured, and completely online—making it accessible to all.

    The ExamPraxis Way: A 3-Pillar Approach to JEE Excellence

    Built on Bloom’s Taxonomy, ExamPraxis is centered around three interconnected pillars: Revise, Practice, Learn. This holistic strategy ensures that students don’t just study—they understand, apply, and improve.

    Pillar 1: REVISE

    JEE success begins with crystal-clear concepts. ExamPraxis ensures this with:

    • NCERT-Aligned Topic-Wise Theory & Rapid RevisionCovering over 100 chapters in Physics, Chemistry, and Mathematics, students can revise key concepts anytime, anywhere.
    • JEE Main & Advanced Chapter Analytics Based on Previous Years’ JEE PapersUnderstand which topics carry the most weight and strategize accordingly.
    • JEE Flash CardsDesigned using cognitive science principles like spaced repetition and active recall—these cards enhance memory and promote long-term retention.

    Pillar 2: PRACTICE

    Practice makes perfect—and ExamPraxis offers 50,000+ curated MCQs, covering every concept across JEE Main and Advanced syllabi.

    • Four-Layered Test System: 
      1. Concept Tests – Strengthen topic-level understanding
      2. Chapter Tests – Deepen subject knowledge
      3. JEEPrevious Year Questions (PYQs) – Familiarize with actual exam patterns
      4. JEE Mock Tests – Replicate real-exam scenarios and build exam temperament through JEE Mock Test.
    • Create Your Own TestA unique feature allowing students to target their weak areas and practice on their own terms—boosting confidence and mastery.

    Pillar 3: LEARN

    The final pillar focuses on intelligent learning through insights.

    • Detailed Test AnalysisAfter every test, students receive a performance breakdown—pinpointing areas of strength and topics needing more work.
    • Error BankMistakes are tracked and stored so students can revisit and correct them—minimizing repeated errors.
    • Bookmark FeatureSave important questions and concepts for quick revision before the exam.
    • Progress Tracker with CGPA-Based ScoringMonitor performance growth over time, providing a clear picture of JEE readiness.

    Technology That Supports Success

    • Platform Access: Web + Mobile Apps (Android & iOS)
    • Secure Infrastructure: Hosted on Google Cloud, SSL certified
    • Safe Payments: Through PayU, no banking details stored
    • Tech Stack: Built on .NET Framework 4.5 and React Native

    Join the Future of JEE Preparation

    With ExamPraxis, students don’t need to rely solely on high-cost coaching or selective mentorship. They can now access comprehensive, structured, and exam-ready learning from anywhere in India.

    Whether you’re aiming for a top IIT or preparing for your first attempt at JEE Main, ExamPraxis gives you the edge—through smart revision, intense practice, and targeted improvement.

    Download ExamPraxis today—and take your first step toward cracking JEE with clarity, confidence, and cognitive precision.

  • NPCI Blames Partner Bank Glitches for UPI Outage Affecting Millions

    The widespread UPI outage on 7 August was attributed by the National Payments Corporation of India (NPCI) to internal technical issue at a “few” partner banks.

    The payments organisation stated that the problem has been resolved and that the NPCI systems were “functioning perfectly” in a post on X. We apologise for any difficulty caused by the sporadic UPI connectivity issues, as a few banks had internal technical challenges. The post stated, “NPCI systems have been operating smoothly, and we have collaborated with these banks to guarantee prompt resolution.”

    Widespread Impact on Digital Payments Across India

    This comes after a significant UPI that affected digital payments nationwide and prevented users from accessing fast payments. Nearly 200 customers reported issues with the payments interface during the height of the disruption, with 61% of users reporting trouble completing payments, according to outage tracking tool DownDetector.

    UPI Faced Four Major Outages in 2025

    This year, there have been four significant UPI outages. Two such events occurred in April after the first significant disruption to the payments rails occurred in March. Major digital payments company PhonePe also went offline in May, citing a lack of network bandwidth.

    NPCI and Government Urge Resilience in UPI Infrastructure

    According to reports, in April, NPCI officials met with representatives of major banks and UPI apps to discuss the outages, which had increased. Nirmala Sitharaman, the finance minister, even stepped in and told the NPCI to “reinforce” UPI’s resilience and stop any more disruptions.

    To expedite UPI transactions, the payments organisation established a new set of guidelines for acquiring banks and payment service providers (PSPs) in May. The huge volume of “check transaction status” APIs used by PSP banks at extremely high transactions per second (TPS) and other problems were brought to the attention of NPCI.

    July 2025 UPI Stats: 19.47 Billion Transactions Hit All-Time High

    Transactions over the Unified Payments Interface (UPI) increased 5.8% to reach a new all-time high of 19.47 billion in July. Year-over-year (YoY), the number of transactions increased by 35%. The number of transactions decreased to 18.40 billion in June.

    UPI transactions in July were INR 25.08 Lakh Cr, up 4.3% from INR 24.04 Lakh Cr in the previous month, according to data from the National Payments Corporation of India. Prior to this, the amount of UPI transactions reached an all-time high of 18.68 billion transactions in May.

    Compared to 613 million in June, the average daily transaction count increased to 682 million in the reviewed month. In addition, the average daily transaction value in July was INR 80,919 Cr.

  • Trump Imposes 100% Tariff on Semiconductors to Boost U.S. Chip Manufacturing

    A harsh 100% tariff on imported computer chips and semiconductors was announced by US President Donald Trump on 6 August. This action may result in increased costs for tech-driven goods, including appliances, autos, and electronics. As he and Apple CEO Tim Cook spoke at the Oval Office, Trump declared, “We’ll be putting a tariff of approximately 100% on chips and semiconductors.” “But if you’re building in the United States of America, there’s no charge,” he continued.

    Major Policy Shift from Previous Tariff Exemptions

    Three months after Trump temporarily spared the majority of electronics from high tariffs, the recent tariff hike represents a significant change in policy. While some current levies remained in effect, gadgets such as computers, smartphones, and other equipment were exempt from new tariffs in April.

    Recently, US Customs revised its guidelines to exempt some electronic products from the standard 10% worldwide duty and the 125% levy on Chinese exports.

    U.S. Tech Giants Respond with Domestic Investment

    Companies that have made significant investments in domestic production, such as Apple, Nvidia, and Intel, may profit from the exception, which is part of Trump’s strategy to promote chip manufacture in the US. Almost $1.5 trillion in US investments have been promised by Big Tech since Trump took office again in January.

    Impact on Apple, Nvidia, Intel, and Global Supply Chains

    On August 6, Apple revealed a new $100 billion investment to increase American manufacturing. It is anticipated that the action will assist the business in avoiding possible iPhone tariffs. With this additional commitment, Apple has committed $600 billion in US investment over the next four years.

    The tech giant had earlier this year declared its intention to invest $500 billion and generate 20,000 jobs nationwide. Ahead of the release of a new model next month, the exemption might help Apple sidestep tariff-related pricing pressures on iPhones made in China and India.

    Following the tariff announcement, Apple shares increased 3% in after-hours trading and 5% during normal trade. Nvidia, which has increased its operations in the US and just reached a $1 trillion market value, also saw an increase. Despite recent difficulties, Intel’s stock increased as well. According to the World Semiconductor Trade Statistics, sales of chips increased by almost 20% year over year as of June, indicating that demand for the product is still high worldwide.

    Country-Specific Tariff Changes: India and Vietnam Targeted

    Strict tariffs on nations essential to Apple’s production network are another aspect of Trump’s tariff strategy. India, a significant iPhone manufacturing hub, will be subject to a 50% levy, half of which will be applied to trade imbalances and the other half as payback for India’s imports of Russian energy.

    Vietnam, a country that produces MacBooks, iPads, and Apple Watches, is already subject to a 20% levy. Trump used Apple as an example of compliance, even though precise implementation schedules and exemption requirements are yet unknown.

  • AU Small Finance Bank Shares Jump 7% as RBI Grants Universal Bank Licence Approval

    The RBI’s in-principle approval of AU Small Finance Bank’s conversion from a Small Finance Bank to a Universal Bank caused its shares to soar by more than 7% on 8 August. In the first trade, shares of AU Small Finance Bank surged up to 7.52% to INR 800.00 per share on the BSE.

    First Small Finance Bank to Receive Universal Bank Licence Nod

    The Reserve Bank of India (RBI) has given AU Small Finance Bank in-principle clearance to convert from a Small Finance Bank (SFB) to a Universal Bank, the bank announced in a regulatory filing on August 7.

    The RBI’s approval follows the bank’s letter from September 3, 2024, asking the Indian Central Bank for a universal bank licence. AU Small Finance Bank is the first SFB to obtain in-principle approval to become a Universal Bank with this approval, which was obtained on August 7.

    AU Bank’s Statement on RBI’s Decision

    According to a press statement from AU Small Finance Bank, this regulatory approval is a powerful affirmation of AU’s competent governance, solid business strategy, and unwavering dedication to financial inclusion.

    More significantly, it validates AU’s development as a comprehensive bank that provides the full range of banking services and products that modern consumers want, including business, retail, and digital solutions. On September 3, 2024, the lender submitted an application to the RBI to voluntarily convert from a Small Finance Bank to a Universal Bank.

    Eligibility Criteria for Universal Bank Status

    A Small Finance Bank (SFB) must maintain a minimum net worth of INR 1,000 crore, have a satisfactory performance history for at least five years, and be listed on stock exchanges in order to meet the requirements to become a Universal Bank.

    Furthermore, in each of the previous two fiscal years, the SFB must have reported Net Non-Performing Assets (NNPA) of no more than 1% and Gross Non-Performing Assets (GNPA) of no more than 3%.

    AU Bank’s Journey from Vehicle Finance to Full-Service Banking

    In 1996, AU Bank was established as a vehicle finance firm, marking the beginning of its history. April 2017 saw its conversion to a small finance bank, and on July 10 of the same year, it went public on stock exchanges.

    In FY25, their net profit was INR 1,592 crore, up from INR 1,428 crore in the previous fiscal year. INR 581 crore was the net profit for the fiscal year’s first quarter. By the end of June, its gross non-performing assets (NPA) had increased from 1.78% to 2.47%. Compared to 0.63%, net NPA was 0.88%.

    AU Bank’s capital adequacy requirement would decrease from 15% upon becoming a universal lender, and the priority sector lending target would drop from 60% to 40%. Therefore, the requirement that at least 50% of the loan portfolio be made up of loans less than INR 25 lakh would also not be applicable.

  • Trump Urges Intel CEO Lip-Bu Tan to Resign Over Alleged China Ties

    The CEO of the US chipmaker Intel has been urged by President Donald Trump to step down “immediately” after being accused of having problematic ties to China. He said that CEO Lip-Bu Tan was “highly conflicted” in a social media post, seemingly alluding to Mr Tan’s purported interests in businesses the US claims have ties to the Chinese military.

    It is uncommon for a president to order a company CEO to quit. Mr Tan was brought on board in March with the goal of revitalising the tech giant, which was a pioneer in the US chips sector but has recently lagged behind rivals. As part of the endeavour to revive America’s semiconductor manufacturing sector, the US government has given it billions of dollars. Intel said in a statement on 7 August that it was supporting Trump’s “America First agenda” by making large investments in the US.

    According to Intel, Lip-Bu Tan, the Board of Directors, and the firm are all steadfastly dedicated to furthering the economic and national security objectives of the United States. The business went on to say that it anticipates continuing to work with the administration.

    Intel Limiting its Footprints in USA

    Mr Tan, a venture capitalist renowned for his proficiency in the semiconductor sector, is a naturalised US citizen who was born in Malaysia and brought up in Singapore.

    In a recent update to investors, he stated that in order to meet consumer demand, the company would be reducing its production investments, including those in the US. In an attempt to “right-size” the company, Intel has already laid off thousands of employees this year.

    Stock Market Reacts to Trump’s Comments

    Trump, who has previously criticised the company and is planning to increase taxes on the semiconductor industry, attacked Intel, causing its shares to drop more than 3% by midday. Trump stated that Intel’s CEO is extremely conflicted and ought to step down right away. This problem can’t be solved in any other way. But, as both Democrats and Republicans publicly express concerns about national security, Washington has tightened restrictions since Trump’s first term, pushing to sever commercial links between the US and China in the area of advanced technology.

    National Security Concerns Intensify

    Republican Senator Tom Cotton expressed worries about Trump’s criticism in a letter to Intel’s board this week, stating that Mr Tan’s affiliations cast doubt on Intel’s capacity to manage American taxpayer funds responsibly and adhere to relevant security laws.

    Cotton cited Mr Tan’s position as the long-time CEO of Cadence Design Systems, a tech company that entered a guilty plea in July and agreed to pay $140 million to the US over allegations that its Chinese subsidiary had violated US export controls by repeatedly doing business with the nation’s National University of Defence Technology.

  • Dell Hits Delete: Employee Layoffs Continue In 2025

    It was TCS last month, Microsoft just two days ago, and now Dell. Layoff season strikes Dell, with reports by CNR stating that Dell’s New Logo acquisition team might be wiped out entirely. 2025 hasn’t been a good year for corporate employees worldwide, and the upcoming days don’t look promising either. Many others are still holding their seats tight at Dell because the company reportedly fired several who thought they were safe yesterday. The report also indicates that Dell will lay off more in the upcoming days, meaning broken trust and shaken will for its employees. Did AI cause trouble again?

    How Many Were Laid Off By Dell?

    Dell hasn’t confirmed the exact number at the moment. However, based on the reports and findings by CNR, about 150 employees were onboard with the ‘New Logo’ team. If what was suggested (the New Logo team being wiped out) was true, then you can estimate that part of the number.

    These employees were put on a task to acquire the commercial and enterprise clients who hadn’t done business with the company for three years. Now, Dell no longer sees the value in maintaining the team. Dell’s sales organization is said to have taken a major hit, too. A few were sent to another team to fit into new roles, and the other were let go.

    It is also suspected that Dell was in collaboration with Bain & Company, the global management consulting firm, when the layoffs occurred. It is said that Bain & Company pointed fingers at middle management, frontline staff, and others. As a result, Dell also terminated their employment.

    What AI Has to Do With Dell Laying Off Employees?

    Dell is now working with AI servers. These are high-performance computers specifically designed to run artificial intelligence. The company garnered $12.1 billion in orders (AI servers) and also shipped $1.8 billion of them last quarter. However, it’s not entirely AI, but AI is driving the layoffs.

    Notably, the company moved from selling to everyone to selling to high-value customers only. Dell had to narrow down the team. Now, if you rethink it, it makes so much sense, why Dell particularly targeted the New Logo and the sales workforce.

    Final Thoughts

    We don’t know the full impact of the layoffs, the numbers, or the reasons behind them yet. Dell is expected to comment and release its statement about the speculation. We’ll be back as soon as the numbers hit the headlines for you.