Cisco is reportedly planning to announce another significant reduction in its workforce, potentially impacting thousands of employees, as part of its ongoing efforts to pivot towards higher-growth sectors like cybersecurity and artificial intelligence (AI). This upcoming round of layoffs would mark the second wave for the company in 2024, following the elimination of 4,000 positions in February. According to sources, the number of job cuts could be similar to or slightly exceed the February layoffs.
The job cut announcement is expected to be made in conjunction with Cisco's fourth-quarter financial results, which could be released as early as August 15, 2024. As of July 2023, Cisco's workforce stood at approximately 84,900 employees, a number that does not account for the layoffs earlier this year. Despite requests, Cisco has not provided any official comment on the reports.
Cisco, a company well-known for its routers and switches that are crucial for internet traffic, has been facing challenges in its core business, particularly related to demand and supply chain issues. To address these challenges and reduce its reliance on hardware sales, Cisco has been diversifying its portfolio, including a $28 billion acquisition of cybersecurity firm Splunk, completed in March 2024. This acquisition is part of Cisco's strategy to enhance its subscription services and reduce dependence on equipment sales.
Additionally, Cisco is pushing to integrate AI into its product offerings. In May 2024, the company reaffirmed its goal to secure $1 billion in AI product orders by 2025. In June, Cisco launched a $1 billion fund dedicated to investing in AI startups, with companies like Cohere, Mistral AI, and Scale AI being among the beneficiaries. Over recent years, Cisco has completed 20 AI-centric acquisitions and investments.
These layoffs are part of a broader trend in the tech industry, where companies are balancing significant investments in AI with cost-cutting measures. Data from Layoffs.fyi indicates that over 130,000 individuals have been laid off from 397 tech firms since the beginning of 2024. In a notable case, Intel reduced its workforce by over 15%, equating to around 17,500 jobs, in an attempt to revitalize its struggling manufacturing division.
The original report on Cisco's planned layoffs was published by Verdict, a brand owned by GlobalData.
The job cut announcement is expected to be made in conjunction with Cisco's fourth-quarter financial results, which could be released as early as August 15, 2024. As of July 2023, Cisco's workforce stood at approximately 84,900 employees, a number that does not account for the layoffs earlier this year. Despite requests, Cisco has not provided any official comment on the reports.
Cisco, a company well-known for its routers and switches that are crucial for internet traffic, has been facing challenges in its core business, particularly related to demand and supply chain issues. To address these challenges and reduce its reliance on hardware sales, Cisco has been diversifying its portfolio, including a $28 billion acquisition of cybersecurity firm Splunk, completed in March 2024. This acquisition is part of Cisco's strategy to enhance its subscription services and reduce dependence on equipment sales.
Additionally, Cisco is pushing to integrate AI into its product offerings. In May 2024, the company reaffirmed its goal to secure $1 billion in AI product orders by 2025. In June, Cisco launched a $1 billion fund dedicated to investing in AI startups, with companies like Cohere, Mistral AI, and Scale AI being among the beneficiaries. Over recent years, Cisco has completed 20 AI-centric acquisitions and investments.
These layoffs are part of a broader trend in the tech industry, where companies are balancing significant investments in AI with cost-cutting measures. Data from Layoffs.fyi indicates that over 130,000 individuals have been laid off from 397 tech firms since the beginning of 2024. In a notable case, Intel reduced its workforce by over 15%, equating to around 17,500 jobs, in an attempt to revitalize its struggling manufacturing division.
The original report on Cisco's planned layoffs was published by Verdict, a brand owned by GlobalData.