Cisco to Lay Off 6,000 Employees Amid Shift to AI and Cybersecurity

Cisco Systems announced plans to cut around 7% of its global workforce, approximately 6,000 employees, as the company refocuses on high-growth areas like artificial intelligence and cybersecurity. This marks Cisco’s second major round of layoffs in 2024, following a 4,000-employee reduction in February.

Despite a 10% year-over-year decline in quarterly revenue to $13.64 billion, Cisco’s earnings still exceeded market expectations. The company is implementing a restructuring plan to invest in key growth opportunities and enhance business efficiency. Pre-tax charges of up to $1 billion are expected from the restructuring, with $700-800 million recognized in the first quarter of fiscal 2025.

CEO Chuck Robbins remains optimistic, citing a return to a “normalized demand environment” for Cisco’s networking equipment. The company is also focusing on emerging technologies, with a $1 billion investment in AI startups and a recent $28 billion acquisition of cybersecurity firm Splunk.

As part of the restructuring, Cisco plans to merge its networking, security, and collaboration divisions into a single organization.