Cisco will reportedly let off roughly 4,000 people in its second round of job layoffs this year, as the world’s largest networking corporation focuses on artificial intelligence.
According to Reuters, Cisco’s current layoff round might affect 4,000 or slightly more people, similar to the number of employees put off in February.
The unidentified sources claimed that the layoffs are due to Cisco moving its attention to higher growth sectors such as AI and cybersecurity, which has happened since last year.
The company has been “grappling with sluggish demand and supply-chain constraints in its mainstay business,” according to the Reuters article.
This has forced the business to diversify, as seen by actions like its $28 billion acquisition of cybersecurity startup Splunk.
Cisco announced in February that it would go through a round of corporate layoffs that would affect 4,250 workers or around 5% of the company’s overall workforce.
This was because, in its fiscal Q2 of 2024, Cisco saw “greater degrees of caution” with regard to product orders, which decreased product revenues.
In July 2023, the massive networking company headquartered in San Jose, California, employed over 85,000 workers.
Newsng gathered that after laying off roughly 4,250 workers in February, Cisco would now have slightly over 80,000 workers worldwide.
Cisco recently established an all-in-one AI data centre solution co-developed with Nvidia that gives startups the server, storage, networking hardware, and AI software they need to implement generative AI and other AI applications on its platform.
When reached, Cisco declined to comment on the situation.
We earlier reported that Cisco, which manufactures networking equipment, announced that it would open a cybersecurity centre in Taiwan.
Guy Diedrich, the company’s global innovation officer, confirmed the partnership.
