By Emmanuel Ogbodo
Global tech service provider, Cisco (Computer Information System Company) is set to implement another round of layoffs, just six months after cutting 4,000 jobs, as it shifts its focus to areas like AI and cybersecurity. Sources indicate that the upcoming job cuts may impact a number of employees similar to or greater than the February layoffs. The announcement is expected alongside Cisco’s fourth-quarter results.
Cisco, the leading manufacturer of routers and switches, has been struggling with declining demand and supply chain issues. In February, the company laid off over 4,000 workers, representing 5% of its global workforce, as part of a strategy to realign its business and invest in key growth areas.
To diversify its revenue streams, Cisco acquired cybersecurity firm Splunk for $28 billion in March, aiming to reduce reliance on one-time equipment sales and expand its subscription services. The company is also pushing into AI, with a target of $1 billion in AI product orders by 2025. In June, Cisco launched a $1-billion fund to invest in AI startups like Cohere, Mistral AI, and Scale AI. Cisco has made 20 AI-related acquisitions and investments in recent years.
As of July 2023, Cisco employed around 84,900 people, not accounting for the February layoffs.
Data from Layoffs.fyi shows that tech companies have laid off nearly 91,000 employees in 2024, a significant reduction from last year. While the wave of tech layoffs peaked at the end of 2022 and early 2023, 2023 still saw the highest number of layoffs in the industry’s history, with nearly 263,000 jobs lost. The majority of these layoffs occurred in January and April.
