Cisco cuts thousands of jobs in second biggest layoff of 2024: Report

US tech giant Cisco has laid off thousands of employees in what is reported to be the company’s second major job cut this year.
According to a TechCrunch report, Cisco is cutting around 5,600 jobs, or 7% of its workforce, as part of its ongoing effort to manage costs amid falling demand and to focus on its investments in artificial intelligence (AI).
This latest round of layoffs follows a previous cut in February when Cisco let go of about 4,000 employees.
The company’s decision has left many employees uncertain, with reports indicating that Cisco did not disclose exactly which departments or teams would be impacted until mid-September.
The layoffs are part of a wider trend in the technology sector, where companies are cutting jobs to deal with economic challenges and a decline in demand.
In total, over 136,000 tech employees have been laid off across 422 companies in 2024, according to industry data. Cisco’s workforce was approximately 85,000 before these layoffs.
Despite the layoffs, Cisco remains optimistic about the future of its business. CEO Chuck Robbins said the company expects a rebound in demand for its networking equipment in the coming months.
As part of its strategy, Cisco is restructuring its business to focus on high-growth areas, including artificial intelligence and cybersecurity.
To strengthen its position in AI, Cisco has allocated $1 billion to invest in AI startups. Additionally, the company made a major move into the cybersecurity sector with its $28 billion acquisition of cybersecurity firm Splunk earlier this year. These investments are part of Cisco’s broader effort to shift its focus from traditional networking equipment to emerging technologies and subscription-based services.
Cisco is expecting to face significant costs as it undertakes its restructuring plan. The company estimates that it will incur expenses of up to $1 billion before taxes, with between $700 million and $800 million of that amount expected to be recognised in the first quarter of its fiscal year.