Next week, Cisco will announce during its quarterly report a new round of layoffs, which will affect approximately the same number of employees as in the of layoffs in February this year — about 4,000 people, according to informed sources.
According to Cisco's report, as of July 2023, the company employed around 84,900 people. Following the publication by Reuters, Cisco's stock fell by 1%, and since the beginning of the year, it has decreased by 9%.
As the largest producer of network equipment, Cisco has faced weak demand for its products and supply chain constraints. In response, the company has diversified its business by acquiring Splunk for $28 billion, a company specializing in cybersecurity and big data analytics. This deal will allow Cisco to reduce its reliance on hardware sales by promoting a subscription-based business model. According to sources, the new layoffs are connected to the company's shift in focus towards higher growth areas, such as cybersecurity and AI technologies.
The company intends to include AI solutions in its offerings, announcing in May a target to secure $1 billion in AI product orders by 2025. In June, Cisco launched a $1 billion fund to invest in AI startups like Cohere, Mistral AI, and Scale AI. Cisco also stated that it has acquired 20 AI companies over the past several years.
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Source: 3dnews.ru
