Cisco Cuts Thousands of Jobs in Major Layoffs as Company Shifts Focus to AI Innovation and Strategy..
Cisco is axing thousands of jobs in a second round of layoffs amid a shift to AI, as reported on August 9, 2024. The networking giant plans to focus on higher-growth sectors like cybersecurity and artificial intelligence. This decision comes after the company laid off 4,000 employees in February.
Sources indicate that the upcoming layoffs could affect a similar number of employees and will likely be announced with the company’s fourth-quarter results.
Key takeaways:
- Cisco is cutting thousands of jobs.
- Focus is shifting to AI and cybersecurity.
- Previous layoffs included 4,000 employees in February.
- Company aims for $1 billion in AI product orders by 2025.
Cisco’s Strategic Shift to AI and Cybersecurity Amid Job Cuts
Cisco is making a bold move by laying off thousands of employees to refocus its business. The company is prioritizing growth in artificial intelligence and cybersecurity. This shift comes as Cisco faces declining demand in its traditional networking business. The layoffs are expected to be similar to the 4,000 jobs cut earlier this year. The announcement is anticipated alongside the company’s fourth-quarter financial results.
Impact of Layoffs on Cisco’s Future in AI and Cybersecurity
The layoffs at Cisco are part of a broader trend in the tech industry, where over 126,000 employees have been laid off this year. As Cisco pivots to focus on AI and cybersecurity, it aims to reduce reliance on traditional equipment sales. The company has made substantial investments, including a $28 billion acquisition of cybersecurity firm Splunk, to enhance its subscription services.
Cisco’s Commitment to Artificial Intelligence Growth
Cisco has set ambitious goals for its AI initiatives. The company aims for $1 billion in AI product orders by 2025. Additionally, Cisco has launched a $1 billion fund to invest in AI startups, reflecting its commitment to innovation in this area.
- 20 AI-focused acquisitions in recent years.
- Partnerships with startups like Cohere and Scale AI.
- Continued investment in AI technology development.
- Focus on boosting subscription-based revenue.
In summary, Cisco’s layoffs are a strategic response to evolving market demands. The company’s shift towards AI and cybersecurity aims to secure its future in a competitive landscape.
