Cisco plans to lay off thousands of employees in second round of job cuts

From Investing.com: 2024-08-09 15:26:58

Cisco is set to lay off thousands of employees in a second round of job cuts this year, focusing on cybersecurity and AI. The number could be similar to the 4,000 layoffs in February. The company’s shares fell nearly 1% after the news. Over 126,000 tech industry layoffs have occurred in 2023.

The layoffs come as Cisco faces slow demand and supply-chain challenges. The acquisition of cybersecurity firm Splunk for $28 billion aims to boost its subscription business. Cisco is investing in AI startups and targeting $1 billion worth of AI product orders by 2025. The tech industry has been cutting costs to invest in AI.

In a bid to streamline its money-losing manufacturing business, chipmaker Intel has laid off over 17,500 people, accounting for over 15% of its workforce. Cisco and Intel are among the tech companies making strategic shifts amidst industry-wide cost-cutting measures and investments in artificial intelligence.



Read more at Investing.com: Exclusive-Cisco to lay off thousands more in second job cut this year, sources say By Reuters