Cisco is set to cut about 7% of its global workforce, amounting to around 6,000 jobs, according to a recent filing with the US Securities and Exchange Commission (SEC). This marks the second round of layoffs for Cisco this year; the company had previously let go of nearly 4,000 employees in February.
The company explained that this restructuring is part of its plan to invest in future growth areas and streamline its operations. Cisco aims to save $1 billion through these layoffs and other cost-cutting measures. The company expects to incur $700 million to $800 million in charges during the first quarter of fiscal 2025, with the rest spread throughout the year.
This move aligns with Cisco’s broader strategy to invest in artificial intelligence. In June, Cisco committed $1 billion to AI startups like Cohere, Mistral, and Scale, and has partnered with Nvidia to enhance AI infrastructure. Additionally, Cisco is ramping up its efforts in cybersecurity. The tech industry as a whole has faced significant layoffs in 2024, with Intel announcing 15,000 job cuts and other major tech firms such as Microsoft, Amazon, and Google also reducing their workforces.
