Cisco layoffs: Company to cut jobs of 6,000 employees amid AI pivot
Cisco plans to cut 7% of its global workforce, impacting 7,000 employees, as part of a restructuring to invest in AI, cybersecurity, and efficiency.
Cisco has announced plans to reduce its global workforce by 7%, as disclosed in a filing with the US Securities and Exchange Commission (SEC). This marks the company's second round of layoffs this year, following the termination of nearly 4,000 employees in February. According to the filing, the restructuring is intended to enable Cisco to invest in key growth areas and enhance business efficiency, impacting about 7% of its workforce. The company aims to cut costs by $1 billion through these layoffs and other initiatives, with severance and other termination benefits expected to incur charges of $700 million to $800 million in the first quarter of fiscal 2025, with the remainder to be recognized throughout the fiscal year.
This announcement comes after Cisco's $1 billion commitment in June to invest in AI startups like Cohere, Mistral, and Scale, focusing on developing advanced AI solutions. Additionally, Cisco has entered into a partnership with Nvidia to build cutting-edge AI infrastructure and has expanded its focus on cybersecurity. The tech industry has been hit hard by layoffs in 2024, with Intel recently announcing 15,000 job cuts and major companies like Microsoft, Amazon, and Google also reducing their workforces.
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