Cisco to lay off close to 6,000 employees as it makes a pivot to AI, cybersecurity

In a filing with the US Securities and Exchange Commission (SEC), Cisco has revealed that it plans to cut 7% of its global workforce. This is the second time in 2024 the tech company has announced layoffs. In February, Cisco had laid off close to 4,000 employees.

“Cisco announced a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business. This restructuring plan is expected to impact approximately 7 percent of Cisco’s global workforce,” said the company in the filing.

The company plans to cut costs by $1 billion through layoffs and other measures, it reported in the filing with SEC. This would consisting of severance and other one-time termination benefits, and other costs. “Cisco expects to recognise approximately $700 million to $800 million of these charges in the first quarter of fiscal 2025 with the remaining amount expected to be recognised during the rest of fiscal 2025,” noted Cisco.

The tech giant committed $1 billion in June to invest in AI startups including Cohere, Mistral, and Scale to develop robust AI solutions. Furthermore, Cisco also announced a partnership with Nvidia to build advanced infrastructure for AI systems.