Cisco to implement another round of layoffs in the second half of this year. Cisco Systems, Inc. is a leading global technology company specializing in networking hardware, telecommunications equipment, and cybersecurity solutions. Founded in 1984, Cisco has played a pivotal role in the development of the internet, providing the infrastructure that powers the modern digital world. The company offers a wide range of products and services, including routers, switches, software, and cloud-based solutions, aimed at enhancing connectivity, security, and collaboration for businesses and organizations worldwide. Known for its innovation and leadership in the tech industry, Cisco is committed to driving digital transformation and enabling the future of work through cutting-edge technology. Cisco to implement another round of layoffs in the second half of this year.
Cisco will lose thousands of positions in a second round of layoffs this year as the US networking equipment giant switches its attention to higher-growth sectors such as cybersecurity and artificial intelligence, according to people familiar with the situation.
The number of workers affected might be close to or somewhat more than the 4,000 employees laid off by Cisco in February, according to sources who were not authorized to talk publicly. The announcement is expected as early as Wednesday with the company’s fourth-quarter results.
Prior to the company’s announcement, Reuters exclusively reported on the job cuts announced by San Jose, California-based Cisco in February. According to its annual filing, the corporation employed around 84,900 individuals in July 2023. That figure does not include the February layoffs. Cisco did not immediately respond to a request for comment. Its stock dropped roughly 1% after Reuters initially reported the layoffs. The stock was down more than 9% this year as of Thursday’s close.
Cisco, the leading manufacturer of routers and switches that direct internet traffic, has been dealing with slow demand and supply-chain bottlenecks in its core business.
This has prompted the corporation to diversify through initiatives such as its $28-billion acquisition of cybersecurity startup Splunk, which was finalized in March. The deal will minimize its reliance on one-time equipment sales while increasing subscription revenue.
The company has been working to include AI goods into its portfolio, and in May it repeated its goal of $1 billion in AI product orders by 2025. In June, it announced a $1 billion fund to invest in AI firms including Cohere, Mistral AI, and Scale AI. The corporation stated at the time that it had undertaken 20 AI-focused acquisitions and investments in the previous several years.
The layoffs are the most recent in the tech industry, which has been reducing expenses this year to counterbalance large expenditures in AI.