Dell is flattening its organizational structure and cutting down management layers.
Vice presidents will now have at least 15 direct reports, while other senior staff will have 20 reports.
A flatter structure will help Dell move faster in an AI-driven world, the company said.
Dell is pushing for a flatter organizational structure with senior managers being asked to oversee larger teams, Business Insider has learned.
Under the changes, vice presidents and above will be required to have at least 15 direct reports, and directors and senior managers will have 20 people reporting to them.
“We continually evolve our business so we’re set up to deliver the best innovation, value and service to our customers and partners. This includes redefining how work gets done, with a flatter structure and fewer management layers so we can move faster in today’s AI-driven world,” a Dell spokesperson told BI.
BI understands that the reorganization will result in fewer management layers, which is intended to speed up decision-making and empower team members to get stuck into work.
Throughout April, divisions across Dell were informed of the changes to their senior management structure.
In one such memo, sent on April 29 and seen by BI, Karen Plotkin, senior vice president of client solutions strategy, announced a reorganization of the Client Solutions Group product operations team, including the departure of a longtime manager.
Some managers have been let go, while others have had their role classification changed from “M” for manager to “I” for individual contributor, which indicates an employee who has no direct reports, BI understands.
One Dell employee, who asked not to be named as they are not authorized to speak to the media, described the new attitude to management as “flatter, leaner, and more with less.” Another described the reorg as being focused on “spans and layers,” referencing a common term in management for the breadth and depth of an organization’s structure.
The restructuring of management is part of a longer-term evolution of Dell’s business strategy and structure.
Over the last two years, Dell staff numbers have fallen by 25,000. The company now has about 108,000 global employees.
In August 2024, the company significantly restructured its sales division, which it told workers was necessary to prepare for “the world of AI.” As part of the restructuring, Dell laid off workers, though it did not specify how many.
The company told workers in January it was “retiring” hybrid work and called employees to return to the office five days a week from March.
Dell had a hybrid working culture on place for more than a decade prior to the pandemic, employees have told BI.
Dell celebrated its 41st anniversary over the weekend.
“The next 41 will be even bigger and more fun,” CEO Michael Dell wrote on X in a post marking the anniversary, adding that the company would be powered by AI.
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