Cisco Systems is set to announce a new wave of layoffs, potentially affecting a number similar to or greater than the 4,000 employees it let go earlier this year.
This move is part of Cisco’s strategy to focus on higher-growth sectors like cybersecurity and AI, as it faces challenges with sluggish demand and supply chain issues in its core networking equipment business.
The company, which employed around 84,900 people as of July 2023 (not accounting for earlier layoffs), is expected to reveal these job cuts alongside its fourth-quarter results. Cisco’s shares fell nearly 1% following the news, reflecting broader market concerns. The stock has been down over 9% this year.
Cisco’s shift includes diversifying into areas such as cybersecurity, exemplified by its recent $28 billion acquisition of Splunk, and investing in AI. Cisco has been actively building its AI portfolio with a $1 billion fund for AI startups and various acquisitions aimed at strengthening its subscription-based business.
The layoffs at Cisco are part of a larger trend in the tech industry, where over 126,000 employees have been laid off in 393 tech companies so far this year, according to Layoffs.fyi.
