Forbes StaffCisco will cut thousands of jobs in a second round of layoffs this year.
Market, business, and employment conditions have been challenging in the past year, and thousands of people from across industries, companies, and organizations have lost their jobs. A new report suggests that Cisco will cut thousands of jobs in a second round of layoffs this year as the US networking equipment maker shifts focus to higher-growth areas, including AI and cybersecurity, said people familiar with the matter.
Cisco to lay off thousands this year.
As per a new report, Cisco, which has already laid off thousands this year, will be laying off thousands more in a second job cut in 2024. It is said that the US networking equipment maker has now shifted focus to higher-growth areas, including AI and cybersecurity. It is also noted that the number of people affected could be similar to or slightly higher than the 4,000 employees Cisco laid off this year in February. This will likely be announced as early as Wednesday with the company’s fourth-quarter results, said the sources, who were not authorized to speak on the same publicly.
Cisco employed more in 2023 and now has massive layoffs in 2024.
California-based Cisco announced massive layoffs in February 2024. However, as of July 2023, it had employed around 84,900 people annually, according to its annual filing. Reuters reported that the company’s shares fell nearly 1% after Reuters first published about the cuts, and the stock went down to 9% this year.
The largest maker of routers and switches, Cisco, which directs internet traffic in its mainstay business, has been dealing with sluggish demand and supply-chain constraints. This pushed the company to diversify with moves like its $28-billion buyout of cybersecurity firm Splunk, which will reduce its reliance on one-time equipment sales, boosting its subscription business. Cisco has been trying to incorporate AI products in its offerings and, in May 2024, reiterated its target of $1 billion worth of AI product orders in 2025. In June 2024, it launched a $1 billion fund investing in AI startups.
However, Cisco will now lay off more people in the tech industry to cut costs and offset big investments in AI.
