Cisco Layoffs: US-Based Tech Company To Lay Off Estimated More Than 4,000 Employees Amid Its Focus on Cybersecurity and AI
US-based networking giant Cisco is planning to announce the second round of job cuts this year. The Cisco layoffs are estimated to cut more than 4,000 people in its latest round.
San Jose, August 10: Cisco Systems, an American tech leader, is planning to cut thousands of jobs in its second round of layoffs this year. The new round of Cisco layoffs will be announced soon due to the company shifting its focus towards cybersecurity and AI. The tech giant laid off nearly 4,000 employees in February by issuing a notice as a part of cost-cutting measures. Cisco has laid off employees for the last two years, consistently reducing its total headcount.
Reuters reported that the new round of Cisco layoffs will impact higher than 4,000 people who were laid off in February 2024. The US networking giant will announce the job cuts, likely on Wednesday, during the announcement of the fourth-quarter results. Before the February layoffs of 4,000 people, Cisco had around 84,900 people as of July 2023. Intel Layoffs Begin Today in Israel, Tech Giant’s ‘Biggest-Streaming Plan’ Estimated To Hit Around 17,000 Global Workforce: Report.
After Intel and Dell, this may be the third company in the global tech industry to reduce its workforce. However, Intel and Cisco both announced the job cuts to plan their growth by incorporating artificial intelligence. According to a report by Reuters, the US-based technology company reiterated its target of USD 1 billion worth of AI product orders by 2025 and is trying to incorporate them in its latest offerings.
The second round of Cisco layoffs is initiated to offset the USD 1 billion investment in AI startups like Cohere, which recently laid off several people, and other companies like Mistral AI and Scale AI. To grow in the fields of AI and cybersecurity, the tech firm said it acquired and invested in 20 startups working in artificial intelligence. Cisco Layoffs: Global Networking Giant Likely To Slash Thousands of Jobs Next Week, Says Report.
This latest move will reportedly be implemented to offset the AI investment cost in these startups. The workforce reduction would further help the company reduce its cost in 2024. So far, the report said, over 1,26,000 employees in the tech sector have been laid off in 2024. This announcement will be a significant blow after Intel laid off nearly 12,500 or more employees in its latest round.
(The above story first appeared on LatestLY on Aug 10, 2024 11:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).