Cisco Layoffs: US networking equipment maker Cisco is going to layoff employees again. This is the second round of job cuts in the company this year. According to a Reuters report, thousands of jobs could be lost in the latest round.
The reason behind this is that the company has shifted its focus to high-growth areas including cybersecurity and AI. Reuters has learned from people familiar with the matter that the number of people affected by the layoffs at Cisco this time could be equal to or slightly higher than the 4,000 employees laid off in February 2024.
This job cut can be announced on Wednesday along with the company’s fourth quarter results. According to the annual filing, Cisco had about 84,900 employees as of July 2023. Cisco, the largest maker of routers and switches that direct internet traffic, is struggling with sluggish demand and supply chain constraints in its core business.
Cyber security firm Splunk has been purchased
These headwinds have prompted the company to diversify with moves such as its $28 billion acquisition of cybersecurity firm Splunk, which closed in March. The acquisition will boost Cisco’s subscription business, reducing its reliance on one-time equipment sales.
Cisco has been trying to incorporate AI products into its offerings. In June, it launched a $1 billion fund to invest in AI startups such as Cohere, Mistral AI and Scale AI. Cisco said at the time that it had made 20 AI-focused acquisitions and investments over the past several years.
More than 126,000 jobs have been created so far this year
According to data from Layoffs.fyi, 393 tech companies have laid off more than 126,000 people since the beginning of 2024. Recently, chipmaker Intel cut its workforce by more than 15%, or about 17,500, in an attempt to revive its loss-making manufacturing business.
