Cisco to Start 2nd Round of Layoffs
Cisco will carry out a second round of large-scale layoffs this year, and it is expected that the number of layoffs may exceed the 4,000 people laid off in February.
Cisco (CSCO) is set to conduct a second round of large-scale layoffs this year, and it is expected that the number of layoffs may exceed the 4,000 laid off in February.
The layoffs are related to the company's shift to high-growth areas such as cybersecurity and artificial intelligence (AI), and the details are expected to be officially announced on Wednesday (August 14) when Cisco releases its fourth-quarter earnings.
According to insiders, the main reason for the layoffs is weak demand for Cisco's core business and supply chain problems.
The layoffs are not surprising and are part of the ongoing wave of layoffs in the technology industry this year. So far, 393 companies have laid off more than 126,000 employees. In early August, Intel (INTC) also laid off about 15% of its employees, about 17,500 people.
Cisco is reducing its reliance on equipment sales through acquisitions and investments. For example, the company acquired cybersecurity company Splunk (SPLK) for $28 billion. In addition, Cisco is actively investing in the field of AI, aiming to achieve $1 billion in AI product orders in 2025 and setting up an AI investment fund.
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