Networking giant Cisco will lay off more than 4,000 employees as it shifts focus and resources to developing AI capabilities.
of new york post report Multinational technology conglomerate Cisco has announced plans to cut more than 4,000 jobs across its global workforce to direct resources to AI initiatives. The layoffs will represent about 5% of Cisco’s 85,000 employees and are expected to cost the company $800 million in severance.
This photo illustration shows a pixelated photo of Facebook founder and CEO Mark Zuckerberg on his iPhone on April 30, 2018 (Photo by Jaap Arriens/NurPhoto via Getty Images)
Cisco CEO Chuck Robbins said in an earnings call that the company will focus on “high-growth areas such as AI and software development.” He emphasized Cisco’s goal to “leverage the multi-billion dollar AI infrastructure opportunity” through partnerships with companies such as Nvidia. Cisco recently collaborated with Nvidia to develop his AI product for enterprises.
The announcement was made in conjunction with Cisco’s quarterly earnings report, which showed adjusted earnings per share of $0.87 and revenue of $12.79 billion. However, Cisco lowered its annual revenue forecast from a high of $55 billion to a range of $51.5 billion to $52.5 billion. Robbins cited “weak demand from carrier and cable service provider customers” as a factor in the adjusted forecast.
Cisco joins a growing list of technology companies cutting jobs in 2024, including Snap, Google, eBay, Microsoft, Amazon, and SAP. These layoffs highlight the overall slowdown in the industry amid continued economic instability.
Cisco’s restructuring efforts mirror the successful downsizing approach used by Mark Zuckerberg’s Meta, which cut its workforce by 22 percent last year. In his remarks, Robbins said the layoffs are a necessary step to free up resources for strategic AI capabilities. “Our innovations are at the center of an increasingly connected ecosystem, and we believe our customers will play a key role in deploying their AI and protecting their organizations,” he said. Yes,” he said.
As experts predict long-term job destruction at the hands of AI, Silicon Valley progressives may be surprised to find their industry on the edge of a cliff.
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Lucas Nolan is a reporter for Breitbart News, covering free speech and online censorship issues.
