| Image: Wikimedia Commons2 min read Last Updated : Sep 19 2024 | 7:04 PM ISTCisco, a leading US tech company, has recently laid off thousands of employees in what marks its second significant job cut this year, according to a report by The Times of India.A report by TechCrunch, as mentioned by the news report, reveals that approximately 5,600 jobs, representing 7 per cent of Ciscos workforce, are being laid off as part of the companys ongoing cost-management efforts amid declining demand.
Cisco is also concentrating on investments in artificial intelligence (AI) as part of its strategy.Earlier in the year, the tech major reduced its workforce by 4,000 employees in a previous round of layoffs that took place in February.Reports suggest that the company has left employees uncertain about which departments or teams will be affected, with further clarity expected by mid-September.These layoffs reflect a broader trend in the technology sector, where many firms are cutting jobs in response to economic pressures and reduced demand.
In 2024 alone, over 136,000 employees across 422 tech companies have been affected by layoffs.
Cisco, which employed roughly 85,000 people before these cuts, is among them, the report said.In a move to realign its business focus, Cisco is investing in high-growth sectors such as AI and cybersecurity.
The company has committed $1 billion towards AI startups and made a significant $28 billion acquisition of the cybersecurity firm Splunk.
These initiatives are part of Ciscos broader effort to transition from its traditional networking equipment business to emerging technologies and subscription-based services, the report stated.CEO Chuck Robbins remains optimistic about Ciscos prospects, anticipating a rebound in demand for the companys networking products.
According to Robbins, inventory adjustments are complete, and the company is now seeing a return to a more normalised demand environment.
This announcement came alongside Ciscos full-year earnings report, which marked 2024 as its second-strongest financial year, with nearly $54 billion in revenue.Despite the job cuts, CEO Chuck Robbins total compensation for 2023 was reported to be nearly $32 million, according to company disclosures, as mentioned in The Times of India report.This restructuring is intended to position Cisco for long-term growth by reallocating resources to areas with the potential for expansion.First Published: Sep 19 2024 | 7:04 PMIST