Cisco could reduce extra jobs, and sure larger than it laid off in early 2024

Cisco, the world’s main networking gear producer, is reportedly planning one other spherical of layoffs this 12 months. In keeping with an unique report in information company Reuters, “Cisco will reduce 1000’s of jobs in a second spherical of layoffs this 12 months because the US networking gear maker shifts focus to higher-growth areas, together with cybersecurity and AI.” The report quotes individuals aware of the matter.
Sources reportedly advised Reuters that the job cuts could possibly be much like, and even barely exceed, the 4,000 workers laid off in February 2024. An official announcement is predicted alongside Cisco’s fourth-quarter outcomes, doubtlessly as early as Wednesday, August 14.

Cisco going through challenges in its core enterprise

The corporate has been going through challenges in its core enterprise attributable to sluggish demand and provide chain disruptions. This has prompted Cisco to diversify its choices by means of acquisitions just like the latest $28 billion buy of cybersecurity agency Splunk. The transfer goals to scale back dependence on one-time {hardware} gross sales and set up a stronger subscription mannequin.
AI is one other space of focus for Cisco. The corporate has formidable plans to succeed in $1 billion in AI product orders by 2025. This technique contains providing AI-powered options inside their core merchandise and selling AI startups by means of a devoted $1 billion funding fund.

Over 1 lakh jobs reduce in know-how business in 2024

Cisco’s job cuts replicate a broader development within the tech business. Many corporations are grappling with rising prices and are resorting to workforce reductions to unlock sources for investments in cutting-edge applied sciences like AI. Over 126,000 tech jobs have been misplaced throughout numerous corporations in 2024 alone, in line with Layoffs.fyi.
Cisco’s determination highlights the stress confronted by tech giants to adapt and innovate in a quickly evolving panorama. Whereas the job cuts are a crucial step for the corporate’s future, they may undoubtedly influence the lives of many workers.