Tech giant Dell is undergoing a dramatic restructuring, with the elimination of approximately 12,500 jobs. This marks the second wave of layoffs for the company in less than 15 months, as it accelerates its shift towards artificial intelligence (AI).

The decision, announced in an internal memo, outlines a plan to centralise sales teams and establish a dedicated unit focused on AI products and services. While Dell aims to capitalise on the burgeoning AI market, the move has sparked widespread concern over job security within the tech industry.

This latest wave of job cuts mirrors a broader trend in the tech industry, where numerous firms are scaling back their workforces in response to economic pressures and evolving market conditions.

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Last week, Intel announced plans to lay off approximately 15,000 employees, equating to 15% of its global workforce. This significant reduction is part of a broader strategy to realise $10 billion in cost savings by 2025, following the company's second-quarter 2024 earnings report on August 1, 2024.

CEO Pat Gelsinger outlined the restructuring in an all-staff meeting and a memo, citing financial challenges and a competitive market landscape as the reasons for the workforce reduction.

According to Layoffs.fyi, 387 tech companies have laid off 126,032 employees so far in 2024. This follows a year in which 1,193 tech companies cut 264,220 positions in 2023.