Cisco Systems will be laying off approx five percent of its global workforce. It will translate to over 4000 job losses across the globe. It has also revised its annual revenue target due to the tough economic environment.
The San Jose based networking giant said the layoffs will cost the company some $800 million in pre-tax related to severance and benefits. This will allow the company to focus on high-growth areas like AI and software development.
The CEO of Cisco Systems, Chuck Robbins, told the investors, “Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”
It announced the layoff call alongside its quarterly results where it cut its annual revenue forecast from $55 billion to $52.5 billion.
A few days ago Cisco announced the next phase of its partnership with Nvidia to offer enterprises simplified cloud-based and on-prem AI infrastructure for both networking hardware and software to support advanced AI workloads.
He also mentioned that Nvidia agreed to use Cisco’s ethernet with its tech.
Cisco is the latest addition in the technology sector to lay off employees in 2024. Earlier this year Snap Inc announced to lay off 10% staff in a new round to affect 500 roles. This year, thousands of job cuts have already happened across various tech companies.
These job-cut announcements signal organizations strive to control costs.
