Cisco Layoffs: Cisco Systems plans to lay off 7 per cent of its workforce in a second round of job cuts this year. The company is currently refocusing on rapidly expanding technology sectors like artificial intelligence (AI) and cybersecurity.
Headquartered in San Jose, California, the company did not disclose the exact number of positions that are being eliminated. With 84,900 employees as of July 2023, this reduction would equate to approximately 5,900 jobs. Earlier in February, Cisco had announced a reduction of around 4,000 positions.
In June, the networking equipment maker announced a $1 billion investment in tech start-ups such as Cohere, Mistral, and Scale to advance the development of reliable AI products. The company has also recently partnered with Nvidia to create infrastructure for AI systems.
Cisco’s layoff announcement comes just two weeks after Intel Corp revealed plans to cut approximately 15,000 jobs as part of its strategy to revitalise its business and compete with successful rivals like Nvidia and AMD. Intel's disappointing quarterly earnings led to a sharp decline in its stock price. In contrast, Cisco’s shares rose about 6 per cent after hours of trading on Wednesday.
In March this year, Cisco expanded into cybersecurity by launching a cybersecurity readiness index designed to help businesses assess their resilience against cyber threats.
For its fiscal fourth quarter ending July 27, Cisco Systems Inc reported earnings of $2.16 billion, or 54 cents per share, a 45 per cent decrease from $3.96 billion, or 97 cents per share, in the same period last year. Excluding special items, the company’s adjusted earnings were 87 cents per share for the latest quarter.
Revenue declined by 10 per cent, dropping from $15.2 billion to $13.64 billion. Based on a survey conducted by FactSet, analysts had projected adjusted earnings of 85 cents per share and anticipated revenue of $13.54 billion.
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