Cisco is reportedly planning a new wave of layoffs, potentially impacting thousands of employees, as it realigns its focus towards high-growth sectors like cybersecurity and artificial intelligence (AI). This follows the company’s previous layoff of 4,000 employees in February, with the latest job cuts expected to be announced alongside its fourth-quarter results, possibly as early as Wednesday.
As of July 2023, Cisco employed around 84,900 people, not accounting for the earlier layoffs. The company has been grappling with weak demand and supply-chain issues in its traditional networking equipment business.
In response, Cisco has diversified its operations, notably through its $28-billion acquisition of cybersecurity firm Splunk completed in March. The company is also aggressively pursuing AI, with a goal of securing $1 billion in AI product orders by 2025 and launching a $1-billion fund for AI startups in June.
The layoffs reflect a broader trend in the tech industry, where companies are cutting costs while investing heavily in AI. Since the start of the year, over 126,000 tech workers have been laid off across 393 companies.
