Photo: Cisco
Cisco According to those in the know, the American networking equipment manufacturer will lay off thousands of workers again this year as it prioritizes investments in cybersecurity and artificial intelligence, two areas with faster growth rates.
According to the anonymous sources, the number of affected individuals might be comparable to, or somewhat greater than, the 4,000 employees that Cisco let go in February. The announcement is expected to be made as early as Wednesday alongside the company’s fourth-quarter results.
As of July 2023, the firm had approximately 84,900 employees, as stated in its annual report. Not included in that figure are the layoffs that occurred in February.
The world’s leading manufacturer of internet routers and switches, Cisco, has been struggling with slow demand and supply-chain bottlenecks in its core business.
That is why the business has been making efforts to diversify, such as the $28 billion acquisition of cybersecurity startup Splunk that it finalized in March. The purchase will increase its subscription business and decrease its dependence on one-time equipment sales.
In May, the business restated its goal of receiving orders totaling $1 billion for AI solutions by 2025, continuing its efforts to integrate AI into its offerings. It invested in artificial intelligence companies like Cohere, Mistral AI, and Scale AI with a $1 billion fund that was launched in June.
In response to large investments in artificial intelligence, the tech industry has been slashing costs this year, and the layoffs are the latest example.
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