By John Doe
According to sources familiar with the matter, Cisco (CSCO) is set to undergo a second round of layoffs this year, with a focus on shifting towards higher-growth areas such as cybersecurity and AI. The number of job cuts could be similar to or slightly higher than the 4,000 employees laid off in February. The announcement is expected to come alongside the company’s fourth-quarter results, which are due to be released on Wednesday.
Cisco, headquartered in San Jose, California, employed around 84,900 people as of July 2023. This figure does not include the employees affected by the layoffs in February. The company has been facing challenges in its core business due to sluggish demand and supply-chain constraints, prompting diversification efforts such as the recent $28 billion acquisition of cybersecurity firm Splunk.
In an attempt to incorporate AI products into its offerings, Cisco has set a target of $1 billion worth of AI product orders by 2025. The company has also launched a $1 billion fund to invest in AI startups. The layoffs at Cisco are part of a broader trend in the tech industry, which has seen over 126,000 job cuts across 393 companies since the beginning of the year.
Earlier this year, chipmaker Intel announced a workforce reduction of over 15%, affecting around 17,500 employees, as part of its efforts to revamp its struggling manufacturing business.
Overall, the tech industry has been making significant cost-cutting moves to offset investments in AI and other emerging technologies.
(Reporting by John Doe in New York; Editing by Jane Smith)