Cisco to lay off thousands of employees in second job cut this year, shifts focus to cybersecurity and AI: Report

Cisco Systems is set to lay off thousands of its employees in a second round of job cut this year, said a report by news agency Reuters.

The San Jose, California-based networking equipment maker is shifting its focus to faster-growing businesses such as cybersecurity and artificial intelligence, as per the report.

In February this year, Cisco Systems had cut approximately 4,000 jobs.

“The number of people affected could be similar to or slightly higher than the 4,000 employees Cisco laid off in February, and will likely be announced as early as Wednesday with the company's fourth-quarter results,” said the report citing sources.

According to Cisco’s annual filing in 2023, the total number of employees was around 84,900 as of July 2023.

The company is shifting its focus to AI products. In May, it reiterated its target of $1 billion worth of AI product orders in 2025.

In June, Cisco had launched a $1 billion fund to make investments in AI startups such as Cohere, Mistral AI and Scale AI.

In the last few years, the company made 20 AI-focused acquisitions and investments.

The layoffs are the latest in the tech industry, which has been cutting costs this year to offset big investments in AI.

At 11:13 am, Cisco shares were down less than 1 per cent in New York.

On June 17, Cisco had announced that it would set up a cybersecurity centre in Taiwan and work with the government to train more people to work in the sector.

It had said that as part of what it calls its Taiwan Digital Acceleration Plan 3.0, it would focus on cybersecurity and planning to partner with the government to train people and address a broader global talent shortage.

“In addition, Cisco aims to collaborate with relevant tech associations to establish a security centre in Taiwan for enhanced threat intelligence and cyber readiness,” it said in a statement.

--With inputs from Reuters