Cisco Systems is reportedly preparing for a second round of job cuts this year. This move comes as the company shifts its focus to high-growth areas such as cybersecurity and artificial intelligence.
Earlier in February, Cisco laid off about 4,000 employees. This time, the company is also planning to let go of thousands of employees. Sources suggest that the upcoming layoffs may be on par with or even exceed the previous round. The announcement is expected to align with Cisco’s fourth-quarter results.
Cisco, which had around 84,900 employees as of July 2023, has been facing reduced demand and supply- chain issues in its core business of routers and switches. In response, the company is diversifying, including a $28 billion acquisition of cybersecurity firm Splunk, in March, to boost its subscription services.
To further support its shift towards AI, Cisco recently launched a $1 billion global investment fund. This initiative aims to develop secure and reliable AI solutions, with strategic investments in startups such as Cohere, Mistral AI and Scale AI.
This trend mirrors similar actions in the tech industry, where companies such as Dell and Intel have also announced significant layoffs to focus on AI. Dell recently cut about 12,500 jobs and plans to centralise sales teams while creating a unit for AI products and services. Intel’s CEO also announced cost-cutting measures earlier this month following the company’s second-quarter earnings. These workforce reductions highlight a broader industry trend as companies manage large-scale investments in AI.
