Cisco, the world’s leading networking equipment maker, is reportedly planning another round of layoffs this year. “Cisco will cut thousands of jobs this year in a second round of layoffs as the US networking equipment maker focuses on high-growth areas including cybersecurity and AI,” according to an exclusive report by news agency Reuters, citing experts.
Sources reportedly told Reuters that the job cuts could be similar to or slightly higher than the 4,000 employees laid off in February 2024. An official announcement will likely be made on Wednesday, August 14, along with Cisco’s fourth quarter results.
The company is facing challenges in its core business due to sluggish demand and supply chain disruptions. This has led Cisco to diversify its offering through acquisitions, such as the recent $28 billion acquisition of cybersecurity firm Splunk. The move is aimed at reducing reliance on one-time hardware sales and establishing a strong subscription model.
AI is another area of focus for Cisco. The company has an ambitious plan to reach $1 billion in AI product orders by 2025. This strategy includes offering AI-powered solutions within their core products and fostering AI startups through a dedicated $1 billion investment fund.
Cisco’s job cuts reflect a broader trend in the tech industry. Many companies are grappling with rising costs and cutting workforces to free up resources to invest in cutting-edge technologies like AI. According to Layoffs.fyi, more than 126,000 tech jobs are set to be lost across various companies in 2024 alone. Cisco’s decision reflects the pressure faced by tech giants to adapt and innovate in a rapidly evolving landscape. While the job cuts are a necessary move for the company’s future, they will undoubtedly impact the lives of many employees.
