Cisco Announces 7% Layoffs Amid Shift to AI

Focus shifts to AI and cybersecurity following second round of layoffs
By Newser.AI Read our AI policy
Posted Aug 14, 2024 8:48 PM CDT
Cisco Announces 7% Layoffs Amid Shift to AI
The Cisco logo appears on a screen at the Nasdaq MarketSite on Oct. 3, 2018 in New York's Times Square.   (AP Photo/Richard Drew, File)

Cisco Systems, based in San Jose, California, is planning additional job cuts, marking its second round of layoffs this year. The tech giant will lay off 7% of its workforce as it pivots towards faster-growing segments like artificial intelligence and cybersecurity. These cuts affect an estimated 5,900 employees based on its July 2023 count of 84,900 employees. Earlier this year, Cisco had already reduced its workforce by about 4,000 positions.

In recent strategic moves, Cisco announced a $1 billion investment in tech startups Cohere, Mistral, and Scale, aiming to advance AI technology. The company has also partnered with Nvidia to develop AI infrastructure and launched a cybersecurity readiness index in March to enhance business resiliency against cyber threats. These initiatives reflect Cisco's intent to innovate and secure a competitive edge in the evolving tech landscape.

Financially, the company reported earnings of $2.16 billion, or 54 cents per share, in its fiscal fourth quarter ending on July 27, a drop from $3.96 billion, or 97 cents per share, the previous year. Adjusted earnings stood at 87 cents per share, surpassing analysts' predictions of 85 cents per share. Revenue fell 10% to $13.64 billion but met analyst expectations. Cisco's stock saw a 6% increase in after-hours trading following these announcements. (This story was generated by Newser's AI chatbot. Source: the AP)

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