Cisco may cut more jobs, and likely higher than it laid off in early 2024

Cisco, the world's leading networking equipment manufacturer, is reportedly planning another round of layoffs this year. According to an exclusive report in news agency Reuters, "Cisco will cut thousands of jobs in a second round of layoffs this year as the US networking equipment maker shifts focus to higher-growth areas, including cybersecurity and AI." The report quotes people familiar with the matter.
Sources reportedly told Reuters that the job cuts could be similar to, or even slightly exceed, the 4,000 employees laid off in February 2024. An official announcement is expected alongside Cisco's fourth-quarter results, potentially as early as Wednesday, August 14.

The company has been facing challenges in its core business due to sluggish demand and supply chain disruptions. This has prompted Cisco to diversify its offerings through acquisitions like the recent $28 billion purchase of cybersecurity firm Splunk. The move aims to reduce dependence on one-time hardware sales and establish a stronger subscription model.
AI is another area of focus for Cisco. The company has ambitious plans to reach $1 billion in AI product orders by 2025. This strategy includes offering AI-powered solutions within their core products and promoting AI startups through a dedicated $1 billion investment fund.

Cisco's job cuts reflect a broader trend in the tech industry. Many companies are grappling with rising costs and are resorting to workforce reductions to free up resources for investments in cutting-edge technologies like AI. Over 126,000 tech jobs have been lost across various companies in 2024 alone, according to Layoffs.fyi.
Cisco's decision highlights the pressure faced by tech giants to adapt and innovate in a rapidly evolving landscape. While the job cuts are a necessary step for the company's future, they will undoubtedly impact the lives of many employees.