Cisco’s Devastating Blow: Thousands More to Face Job Cuts in Second Round This Year | Company News

Cisco to Announce Second Round of Layoffs Amid Shift to AI and Cybersecurity

Cisco Systems Inc., the leading US networking equipment maker, is set to announce a second round of layoffs this year, focusing on higher-growth sectors like cybersecurity and artificial intelligence. According to sources familiar with the situation, this wave could affect roughly as many or slightly more employees than the 4,000 workers laid off in February.

The company, headquartered in San Jose, California, employed around 84,900 people as of July 2023, with the February layoffs not reflected in that figure. Cisco has been struggling with weakened demand and supply chain challenges in its core business, prompting its diversification strategy.

In March, Cisco completed a $28 billion acquisition of cybersecurity firm Splunk to shift from one-time equipment sales to a subscription-based model. The company has been integrating AI into its offerings and aims for $1 billion in AI product orders by 2025. In June, Cisco launched a $1-billion fund to invest in AI startups, having already made 20 AI-focused acquisitions and investments in recent years.

These layoffs are part of a broader trend in the tech industry, which has seen over 126,000 job cuts across 393 companies this year as firms seek to manage costs while investing heavily in AI. Recently, Intel also cut over 15% of its workforce, equivalent to around 17,500 employees, to try and turn around its loss-making manufacturing division.

Cisco has yet to respond to requests for comment on the upcoming layoffs, which are expected to be confirmed alongside its fourth-quarter results.

Original Story https://www.business-standard.com/companies/news/cisco-to-lay-off-thousands-more-in-second-job-cut-this-year-report-124080901751_1.html
Category :
Tags: