Cisco Layoffs: Networking Giant Announces Second Round of Job Cuts This Year, Laying Off 6,000 Employees
Cisco is reportedly planning to lay off around 6,000 employees, approximately 7 percent of its global workforce, as part of a restructuring effort to reallocate resources toward emerging areas like artificial intelligence (AI) and cybersecurity, aiming to save USD 1 billion and focus on future growth in these sectors.
New Delhi, August 15: Cisco is reportedly preparing for second round of layoffs this year, which may impact nearly 6,000 employees. As per reports, the company will likely be shifting its operations toward artificial intelligence (AI) and cybersecurity. The layoffs is said to come as a restructuring effort as the company seeks to allocate resources more efficiently, particularly in emerging areas like AI. The step from Cisco highlights the growing importance of AI and cybersecurity in the tech industry.
As per a report of Money Control, Cisco plans to lay off around 7 percent of its global workforce, which will likely be close to 6,000 employees, as it shifts its focus to AI and cybersecurity. The decision shows a shift for the company, which has traditionally been known for its networking hardware. The layoffs might be a restructuring effort for reallocating resources to areas that Cisco may focus on for its future growth. The job cuts are expected to take place in the coming months. Dell Layoffs Not Surprising to Some Workers, They Claim To Have Known About It As Company Began Working on AI Strategy Months Ago: Report.
According to several reports, Cisco recently announced its earnings for the fourth quarter of the 2024 fiscal year. The company generated USD 13.6 billion in revenue, which is a 10 percent decrease compared to the previous year. However, this revenue exceeded the upper limit of Cisco's expected range. Intel Layoffs in Ireland: Tech Giant Reportedly Offers Irish Staff 5,00,000 Euros in Exit Package in Its Latest Round of Job Cuts Affecting Over 16,500 Global Workforce.
The company reportedly wants to save USD1 billion by laying off employees and implementing other cost-cutting measures. These measures is said to include providing severance packages and other benefits to those who will be laid off. Cisco has been focusing more on AI and cybersecurity, as shown by their recent investments and partnerships. In June, they decided to invest USD 1 billion in AI startups like Cohere, Mistral and Scale. The goal was to create strong AI solutions. Additionally, Cisco partnered with Nvidia to develop advanced infrastructure for AI systems.
(The above story first appeared on LatestLY on Aug 15, 2024 03:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).