Cisco Layoff Strategy for Market Success - Business

Cisco to Lay Off Thousands of Employees

Cisco , the world 's largest networking company , is set to lay off around 4,000 employees in its second round of job cuts this year . This move comes as Cisco doubles down on artificial intelligence and shifts its focus to higher - growth areas such as cybersecurity and AI . The layoffs , which could affect a similar number of employees as the previous round in February , are expected to be announced next week along with the company 's fourth - quarter results on Aug. 14 , as reported by Reuters . The San Jose , California - based company employed about 85,000 people in July 2023 , and following the layoffs earlier this year , it would leave Cisco with just over 80,000 employees worldwide.

 Cisco announced that it would conduct a companywide layoff round that would impact about 5 percent of its workforce , totaling about 4,250 employees in February . This decision was made due to greater degrees of caution related to product ordering during its fiscal Q2 in 2024 . The tech giant confirmed that it would be cutting jobs globally to adjust expenses and investments to reflect the current macro environment . Cisco expects to recognize about 00 million in charges associated with the restructuring , which is largely related to severance and other one - time termination benefits.

Cisco Layoff Strategy for Market Success

Focus on AI and Cybersecurity

Cisco has been actively incorporating AI products into its portfolio with plans to drive billion worth of AI product orders in 2025 . The company launched a -billion fund to make investments in AI startups such as Cohere , Mistral AI , and Scale AI . By diversifying its offerings and boosting its subscription business with acquisitions like Splunk , Cisco aims to reduce its reliance on one - time equipment sales . The layoffs are part of the company 's strategy to adjust expenses and investments in line with the current market conditions.

Tech Industry Trends

The layoffs at Cisco are part of a broader trend in the tech industry , where companies have been cutting costs to offset investments in AI . Over 126,000 people have been laid off across 393 tech companies since the beginning of the year , according to data from Layoffs.fyi . Chipmaker Intel recently cut over 15 % of its workforce , or around 17,500 people , as it sought to turnaround its money - losing manufacturing business . As the tech industry continues to evolve and prioritize AI and cybersecurity , companies like Cisco are making strategic adjustments to stay competitive in the market.

In conclusion , the upcoming layoffs at Cisco underscore the company 's shift towards AI and cybersecurity while adapting to market demands and trends in the tech industry . With a focus on innovation and growth in high - potential areas , Cisco aims to position itself for long - term success despite the challenges posed by the current macro environment.