Cisco Likely To Cut Thousands More Jobs in Second Wave of Layoffs

A source from Indian Express said that the second round of layoffs this year will see Cisco cutting thousands of jobs as the US networking equipment maker is shifting its focus to higher-growth areas, including cybersecurity and AI. 

Company’s Soon Announcement For Layoffs

According to the annual filing of the company, Cisco employed around 84,900 people as of July 2023. However, That number does not account for the February layoffs.

Around and more than 4,000 employees will be affected this time, the same as it was affected in the February layoffs. As per the Indian Express source, The company will announce as soon as possible by Wednesday with the company’s fourth-quarter results. In a Reuters report, the job cut that San Jose, California-based Cisco announced in February before the company announced it.

Shares And Stock Will Be Affected 

As per Reuters, Its shares fell nearly 1% and the stock was down over 9% this year as of Thursday’s close. Cisco, the largest maker of routers and switches that direct internet traffic, has been struggling with sluggish demand and supply-chain constraints in its business.

This shift has led the company to diversify, including a $28-billion buyout of cybersecurity firm Splunk, which was completed in March. The deal aims to reduce its reliance on one-time equipment sales by expanding its subscription business.

Investment in AI Startups

The company has been trying to introduce AI products in its offerings and in May reiterated its target of $1 billion worth of AI product orders in 2025. In June, to invest in AI startups it launched a $ 1 billion for the Cohere, Mistral AI, and Scale AI. As per the company it has made 20 AI-focused acquisitions and investments in the last several years.

According to data from tracking website Layoffs. fyi. Over 126,000 people have been laid off across 393 tech companies since the start of the year. The layoffs are part of a broader trend in the tech industry, which has been cutting costs this year to offset big investments in AI.

In August, chipmaker Intel reported a cut of over 15% of its workforce, or some 17,500 people over money-losing business. 

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