Cisco plans second round of job cuts amidst shift towards cybersecurity and AI

The number of layoffs may be similar to or exceed the 4,000 jobs cut in February and will probably be announced with the company’s fourth-quarter results.
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Cisco is set to lay off thousands of employees in a second round of job cuts this year, focusing on restructuring towards higher-growth areas like cybersecurity and AI. The affected employees could match or exceed the 4,000 workers let go in February. The layoffs, expected to be announced with Cisco’s fourth-quarter results, are part of the company’s strategy to adapt to declining demand in its traditional networking equipment business.

As Cisco diversifies, it has completed a $28 billion acquisition of cybersecurity firm Splunk, aiming to shift more towards subscription services and reduce reliance on one-time equipment sales. The company is also heavily investing in AI, with a $1 billion fund launched in June to support AI startups and a goal of $1 billion in AI product orders by 2025.

These layoffs reflect broader cost-cutting measures in the tech industry, where over 126,000 jobs have been lost across 393 companies this year. Cisco’s stock has declined over 9% this year, partly due to challenges in its core business and the ongoing restructuring efforts.