Tech giant Cisco to fire 4,000 employees, says report

• Published On: 11 August 2024 at 15:29

Cisco Systems is preparing to announce a new round of layoffs, which could effect as many as or more than the 4,000 employees laid off earlier this year.

This move is part of Cisco's goal to shift its attention to higher-growth industries such as cybersecurity and artificial intelligence, as the company deals with sluggish demand and supply chain concerns in its core network equipment business.

The corporation, which employed approximately 84,900 workers as of July 2023 (not including previous layoffs), is likely to announce these employment losses alongside its fourth-quarter results. Cisco's stock dipped about 1% after the announcement, echoing broader market fears. The stock has fallen more than 9% this year.

Cisco's change includes diversifying into areas such as cybersecurity, as demonstrated by its recent $28 billion acquisition of Splunk, as well as investing in artificial intelligence. Cisco has been actively expanding its AI portfolio, including a $1 billion fund for AI startups and a number of acquisitions geared at bolstering its subscription-based revenue.

Cisco's layoffs are part of a bigger trend in the computer industry, with over 126,000 employees fired off at 393 major businesses this year, according to Layoffs.fyi.