Cisco to cut jobs again in second round of layoffs
Business: Cisco is set to implement a second round of layoffs this year, adding thousands of employees to the workforce as the company shifts its focus to high-growth areas such as cybersecurity and AI. The move follows a previous round of layoffs in February, which saw 4,000 employees laid off. According to a Reuters report, the upcoming layoffs could hit a similar number of employees and are expected to be officially announced alongside the company’s fourth-quarter results. The report, citing sources, claims that “the number of people affected could be equal to or slightly higher than the 4,000 employees Cisco laid off in February and will be announced alongside the company’s fourth-quarter results on Wednesday.”
As of July 2023, Cisco has hired about 84,900 people,
This figure does not include the layoffs made in February. The leading company, a maker of routers and switches that direct internet traffic, is facing sluggish demand and supply chain challenges in its core business. These pressures have led Cisco to diversify its portfolio, including a $28 billion acquisition of cybersecurity firm Splunk in March, aimed at reducing its reliance on one-time equipment sales by strengthening its subscription services. Cisco is also integrating AI into its offerings, targeting $1 billion in AI product orders by 2025. In June, the company launched a $1 billion fund to invest in AI startups such as Coher, Mistral AI, and Scale AI, further reinforcing its commitment to the AI space.
