Cisco To Layoff 6,000 Employees Amid AI Pivot
This is the second round of layoffs for the tech giant in 2024, following a similar move in February when nearly 4,000 employees were let go
Cisco has announced plans to cut 7 per cent of its global workforce, as detailed in a recent filing with the U.S. Securities and Exchange Commission (SEC). This is the second round of layoffs for the tech giant in 2024, following a similar move in February when nearly 4,000 employees were let go. The restructuring effort is designed to help the company invest in key growth areas while streamlining operations.
In its filing, Cisco emphasised the need to enhance efficiency, with the goal of saving $1 billion through layoffs and other cost-cutting measures. The process will involve severance packages, one-time termination benefits, and additional costs. Cisco expects to incur $700 to $800 million of these charges in the first quarter of fiscal 2025, with the remaining costs spread throughout the year.
Despite the layoffs, Cisco has maintained its focus on innovation, particularly in the areas of artificial intelligence (AI) and cybersecurity. In June, the company committed $1 billion to invest in AI startups, including Cohere, Mistral, and Scale, to help drive the development of AI solutions. Additionally, Cisco has partnered with Nvidia to build advanced infrastructure for AI systems and has continued to expand its efforts in cybersecurity.
