Cisco Layoffs: US Tech Giant Laying Off Around 5,600 Employees, 7% of Its Workforce To Focus on AI, Automation and Cloud for Future Growth
US tech company Cisco has announced its second round of major tech layoffs affecting 5,600 employees from the workforce. The Cisco layoffs, implemented to focus on AI and automation, has reportedly hit the cybersecurity division as well that protected company from cyberattacks.
San Jose, September 18: The second wave of Cisco layoffs has been implemented, affecting 5,600 employees. The US-based tech company already announced in August that it would further reduce its workforce by 7% after the February layoffs. The latest job cuts are not related to cost-cutting measures or restructuring exercises, as the US tech giant reported good financial performance this year. The Cisco layoffs are implemented due to AI and automation.
According to reports, Cisco has laid off 7% of its employees, which comprise about 5,600 individuals. The latest round has also affected the employees working in the security division. In February, Cisco laid off around 4,000 people, and with the latest round, the employees complained about the company and its work environment. Paramount Global Layoffs: US Media Giant Cuts Unspecified Jobs in Advertising Division Ahead of Merger With Skydance Media.
The employees said that Cisco did not reveal who was affected until September 16 and did not give any reasons for a month-long delay in informing the affected staff members. TechCrunch said in its report that one of the Cisco employees said that it had become the "most toxic environment" they worked in.
The reason for the Cisco layoffs is that the company aims to focus on growth areas like artificial intelligence, cloud and automation. Cisco already hinted about upcoming job cuts in August 2024 but did not disclose how many people would be affected. The layoffs have reportedly hit the Talos Security division, which handled all the cybersecurity operations, including threat intelligence and protection against potential cyberattacks.
The team was surprised by the move as the company had been facing several cybersecurity threats already, which made them raise concerns. Cisco has announced the tech layoffs despite reporting USD 54 billion in revenue, its second-strongest performance. The company justified its workforce reduction decision and said that it would focus on the growth areas, drive efficiency and benefit in long-term growth. Verizon Layoffs: US-Based Telecom Giant to Cut Nearly 5,000 Jobs amid Cost-cutting and Reorganisation.
Besides Cisco, many other tech companies have reduced significant employees this year. These include Verizon, PwC, Samsung, Bending Spoons, Dozee, Dunzo, Apple, Fiv9, GoPro, MasterCard, TikTok, Paytm, BYJU's and others. This year, the biggest tech layoff announcement came from Dell and Intel, which affected thousands of employees globally.
(The above story first appeared on LatestLY on Sep 18, 2024 12:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).