Cisco, the global leader in networking and IT solutions has initiated a second wave of layoffs, cutting thousands of jobs as part of a major restructuring effort. The company is reducing its workforce by 7%, which translates to approximately 5,600 employees. These layoffs come after an initial announcement in August, with the company delaying the disclosure of specific departments and employees affected until September 16.
The San Jose-based company stated in a filing with the U.S. Securities and Exchange Commission (SEC) that the job cuts are part of a larger plan to streamline operations and reinvest in key growth areas. Cisco aims to consolidate its security, networking, and collaboration segments into a single unit, optimizing its resources to focus more on emerging technologies like artificial intelligence (AI) and automation.
This marks the second significant reduction in the company’s headcount this year. In February, Cisco laid off around 4,000 employees as part of its efforts to adjust to evolving market conditions and remain competitive in the rapidly changing tech landscape.
Cisco’s decision to implement further cuts underscores the challenges many large tech companies are facing in the current economic climate. Like others in the industry, Cisco is looking to remain agile by cutting costs while simultaneously positioning itself for future growth.
Despite the layoffs, Cisco remains committed to leveraging AI technologies to drive innovation across its product portfolio. The company has also emphasized that the restructuring will allow it to focus on its core business areas and pursue new opportunities in the digital transformation space.
In its statement, Cisco said,
“We are making these strategic changes to ensure that we are investing in the right areas of our business and delivering the most value to our customers. The workforce adjustments are difficult but necessary to continue our leadership in an increasingly competitive environment.”
The layoffs are not expected to impact Cisco’s overall financial outlook for the year. In recent earnings reports, Cisco posted strong revenue growth, driven by demand for its cloud computing, cybersecurity, and networking services. The company’s push toward AI integration and automation is seen as a strategic move to maintain its market leadership and stay ahead of competitors in the growing fields of advanced networking and enterprise solutions.
As part of its restructuring, Cisco is also investing heavily in AI to enhance its products and services, particularly in areas such as cybersecurity and network management. The company believes that AI-driven innovations will be key to its long-term success and is reallocating resources to develop new tools and solutions that will benefit customers in the future.
The recent layoffs reflect a broader trend in the technology sector, where companies are cutting jobs and rethinking their strategies in response to economic pressures and shifting demand. Many firms, including Microsoft, Google, and Meta, have announced similar workforce reductions in recent months as they adjust to the post-pandemic economic landscape and refocus on core business areas.
Cisco, despite its workforce reduction, remains optimistic about the future. The company is continuing to invest in AI, cloud, and cybersecurity technologies, aiming to provide its clients with cutting-edge solutions in a world increasingly dependent on digital infrastructure.
The restructuring and job cuts are expected to be completed by the end of the year, with Cisco continuing to evaluate its business needs and make adjustments as necessary to stay competitive in the fast-evolving tech industry.
