• 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.

Are you a Dell employee with insight to share? Contact these reporters via email at [email protected] and [email protected], or via Signal at Polly_Thompson.89 and jyotimann.11. Reach out via a nonwork device.

• Dell is calling its global workforce back to the office full time, per a memo obtained by BI.
• In September, the company told its sales teams to be in the office five days a week.
• "Nothing is faster than the speed of human interaction," CEO Michael Dell told staff in the email.

Dell is calling an end to hybrid and remote work.

In an email sent on Friday morning, CEO Michael Dell said that from March the company would expect all employees living within an hour of offices to be at their desks five days a week.

"Starting March 3, all hybrid and remote team members who live near a Dell office will work in the office five days a week. We are retiring the hybrid policy effective that day," the CEO, who has a net worth of $117 billion, told staff.

According to the email, which BI exclusively obtained, employees who live far from a Dell office will be allowed to continue working remotely.

"What we're finding is that for all the technology in the world, nothing is faster than the speed of human interaction," Michael Dell told staff. "A thirty-second conversation can replace an email back-and-forth that goes on for hours or even days."

The CEO acknowledged that staff would have questions.

"Please hold those for now," he said. "We're still working through details, and additional information will be available soon."

BI understands that leaders at Dell will be able to ask for exemptions for their team members.

Most offices have capacity for all workers to return in March, but in the few cases where space was limited, Dell will provide guidance in the coming month, BI understands.

"We continually evolve our business so we're set up to deliver the best innovation, value and service to our customers and partners. That includes more in-person connections to drive market leadership," a Dell spokesperson told BI.

Dell has already implemented a five-day return-to-work policy for some parts of its business.

In September, the company sent a memo to its entire global sales team informing them they would be required to work in the office full time.

Manufacturing teams, engineers in the labs, onsite team members, and leaders had also already been asked to be in the office five days a week.

Parents at Dell told BI that the September five-day mandate had left them scrambling to find childcare arrangements, while other sales staff said there was a shortage of parking spots and desks — a common logistical challenge for companies implementing RTO.

Vivek Mohindra, Dell's senior vice president of corporate strategy, told BI in December that the company had seen "huge benefits" from bringing the sales team back to the office and that the energy on the sales floor had been "very different" since the policy was introduced.

The company, which sells PCs and enterprise technology such as servers, asked its more than 100,000-strong workforce to classify as either remote or hybrid in February 2024.

Last year, BI obtained internal data showing that close to 50% of Dell's full-time workers in the US initially chose to stay remote, while a third of international staff remained remote. Their reasoning included living far from the office, working in teams spread over different states and countries, and working remotely before the pandemic.

When Dell introduced its initial return to office policy in 2024, it said that workers opting to stay remote would not be considered for promotion, or be able to change roles.

Dell joins a growing list of companies, including Amazon, AT&T, and JPMorgan, that have reversed their stance on remote work and now expect employees to be in the office full-time.

Federal workers have also been called to return to their offices full time after President Donald Trump signed an executive order mandating an RTO on his first day in office last week.

Read the full memo below:

Team,

We are building a new Dell Technologies for a new future. The pace of innovation has never been faster, and for us to lead, the speed of our business must continue to accelerate. What we're finding is that for all the technology in the world, nothing is faster than the speed of human interaction. A thirty second conversation can replace an email back-and-forth that goes on for hours or even days.

We've already asked our sales teams, manufacturing teams, engineers in the labs, onsite team members and leaders to be in the office five days a week, and we have seen these areas come alive with new speed, energy, and passion. Now, we want to see that same sense of urgency and drive everywhere.

Starting March 3, all hybrid and remote team members who live near a Dell office will work in the office five days a week. We are retiring the hybrid policy effective that day. We remain committed to flexibility within your workday, and you should continue to work with your manager to meet your needs. But for the most part, you should plan to work in the office five days a week.

If you opted-in for remote work and live near a Dell office, we expect you to join us in the office. If you are remote and live a long distance from a Dell office, you'll stay remote. If you are field, you will continue to spend five days a week with customers and partners or in a Dell Technologies office.

We know you may have questions about what this means for your specific situation. Please hold those for now. We're still working through details, and additional information will be available soon. But I personally wanted to share this news sooner rather than later, so you have time to process and plan.

We continually evolve our business to deliver the best value and service to our customers and partners. I'm excited for us to have more in-person connections to drive speed, market leadership, and an even stronger culture.

I look forward to seeing many more of you in the office. Welcome back!

Michael 

Are you a Dell employee with insight to share? Contact these reporters via email at [email protected] and [email protected], or via Signal at Polly_Thompson.89 and jyotimann.11. Reach out via a nonwork device.