In Short:
Cisco Systems is preparing to lay off thousands of employees for the second time this year in order to focus on faster-growing areas like cybersecurity and artificial intelligence. The number of job cuts may be similar to the 4,000 in February. The company has been investing heavily in AI products and setting up a cybersecurity centre in Taiwan.Cisco’s shift in focus is in line with other tech companies cutting costs to invest in AI.
Cisco Systems to Lay Off Employees
Reports from Reuters have revealed that Cisco Systems is gearing up for a second round of layoffs this year, impacting thousands of employees.
Shift in Focus
The San Jose-based networking equipment maker is realigning its strategies towards more dynamic sectors like cybersecurity and artificial intelligence.
Past Layoffs
Earlier in February, Cisco Systems had already let go of approximately 4,000 employees.
Expected Impact
Sources suggest that the upcoming layoff numbers may mirror or exceed the previous cut, with an official announcement likely coinciding with the company’s fourth-quarter results release.
Company Details
As per the 2023 annual filing, Cisco Systems currently has around 84,900 employees as of July.
Focus on AI
Cisco is honing in on AI products, setting a target of $1 billion in AI product orders by 2025. Moreover, it recently launched a $1 billion fund for investments in AI startups.
Industry Trends
This move aligns with industry trends as many tech companies have been trimming their workforce this year to balance the scale of investments in AI.
Stock Performance
At 11:13 am, Cisco’s stocks showed a marginal decline of less than 1 per cent in New York.
Cybersecurity Developments
In a recent move on June 17, Cisco announced plans to establish a cybersecurity centre in Taiwan to tackle the global talent shortage in this domain.
As part of its Taiwan Digital Acceleration Plan 3.0, the company aims to collaborate with tech associations towards enhancing cybersecurity readiness.
–With inputs from Reuters
