Cisco, a leading networking company, is planning to lay off a significant number of employees. The company recently announced its results for the fourth quarter, from May to July, which were better than expected. Despite this, Cisco is moving forward with mass layoffs.
According to reports, Cisco may reduce its workforce by 7%. This decision could impact around 6,000 employees. This is the second time this year the company has announced layoffs; in February 2024, Cisco had already laid off 4,000 employees, which was about 5% of its workforce.
The layoffs are part of Cisco’s strategy to cut costs and focus more on cybersecurity and AI. The company believes this move will help it save $1 billion. Cisco expects to save between $700 million and $800 million by the first quarter of fiscal year 2025, with more savings planned by the end of the year.
In June 2024, Cisco announced investments in AI startups Cohere, Mistral, and Scale, totaling $1 billion. The company will also collaborate with Nvidia on AI projects.
Cisco is not alone in this trend. Intel has announced layoffs of 15,000 employees, and Dell has announced 12,500 layoffs. Other major companies like Microsoft, Amazon, and Google have also recently announced employee reductions.
