Dell Cuts 12,500 Jobs in Major Reorganization to Focus on AI

Dell Technologies has announced a significant restructuring of its global workforce, resulting in the layoff of approximately 12,500 employees, which constitutes about 10% of its total staff. The move is part of a broader strategy to modernize operations and emphasize artificial intelligence (AI) within the company.

According to an internal memo sent by Dell senior executives Bill Scannell and John Byrne, the company plans to centralize its sales teams and establish a new AI-focused sales unit. The memo, titled “Global Sales Modernization Update,” outlines the company’s efforts to streamline management layers and prioritize investments in AI technologies.

While Dell has not confirmed the exact number of layoffs, reports suggest that around 12,500 employees will be affected. The layoffs predominantly involve managers and senior managers, including some with extensive tenure at the company. Affected employees include those from sales, marketing, and operations divisions, with many long-standing staff members reported to have been let go.

Dell’s workforce has been shrinking steadily, with reductions from 130,000 to approximately 120,000 since February 2023. Employees have noted a recurring pattern of layoffs every six months and expressed concerns over limited career advancement opportunities within the company. One employee remarked, “I have been searching for a new job outside of Dell for nine months,” highlighting ongoing job security concerns among the staff.