Cisco, a leading technology company, has announced another round of layoffs, cutting 7% of its global workforce. This marks the second significant job reduction in 2024 for the company. The move comes as part of a broader restructuring plan aimed at driving efficiencies and reallocating resources to key growth areas, including artificial intelligence (AI) and cybersecurity.
Details of the Layoffs
In a recent filing with the U.S. Securities and Exchange Commission (SEC), Cisco disclosed its plan to reduce its global workforce by 7%. This latest round of layoffs follows a similar reduction earlier this year in February when the company laid off close to 4,000 employees. The cuts are part of a cost-saving initiative, with Cisco aiming to save $1 billion through layoffs and other measures, including severance packages and one-time termination benefits.
Cisco expects to incur charges of $700 million to $800 million in the first quarter of fiscal 2025, with the remaining costs to be recognized throughout the fiscal year. These measures are intended to streamline operations and position the company for future growth in strategic areas.
Investment in AI and Cybersecurity
Despite the layoffs, Cisco is not shying away from investing in future technologies. In June, the company committed $1 billion to support AI startups such as Cohere, Mistral, and Scale. This investment underscores Cisco’s dedication to developing robust AI solutions, which are expected to play a critical role in the tech industry’s future.
Moreover, Cisco has expanded its focus on cybersecurity, a crucial area given the increasing threat of cyberattacks. The company launched a cybersecurity readiness index earlier this year, designed to help businesses assess their vulnerability to cyber threats and enhance their security posture.
Industry-Wide Layoffs
Cisco’s layoffs are part of a larger trend within the tech industry in 2024. Earlier this month, Intel announced plans to cut around 15,000 jobs, adding to the wave of layoffs sweeping across major tech companies like Microsoft, Amazon, and Google. The industry is grappling with economic pressures, leading to widespread job reductions as companies seek to optimize costs and focus on their most promising business segments.
Conclusion
Cisco’s decision to cut 7% of its workforce reflects the company’s strategic restructuring efforts to maintain competitiveness in a rapidly evolving tech landscape. While these layoffs are part of cost-saving measures, Cisco’s continued investment in AI and cybersecurity indicates its commitment to long-term growth and innovation.
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