Dena Bass

Sure.

And to be clear, HP did a similar magnitude job cut over the last three years.

They just finished it.

They have these kind of periodic efficiency plans, I guess.

What's new about this one is the idea is that they are going to use AI tools and models to do things like product development, customer service, sales.

And that's where you're getting these job cuts.

And at the same time, even though they're going to be saving money that way, they said,

they actually came in below on their guide for next year for fiscal year profit, and that was because of a completely different issue around memory price increases.

So you had both, you had these job cuts, and it's not making the bottom line look where people expected it would come in.

So the AI server business, and it's basically said, I know you're going to be talking about GPUs in a minute.

Those are the servers that have GPUs that go into these AI data centers.

And the demand for them has been very high for Dell and other makers of them.

The problem is that in order to get some of these deals and in order to deploy some of those servers, Dell was basically incurring more significant costs.

What they're trying to do now is pull back from that a little bit.

to widen the profit margin in that business.

They succeeded in the last quarter, they told me, because they were able to serve a more diverse group of customers, so some of those were at better, more profitable sets of deals.