Cisco Announces Second Round of Layoffs in 2024

Mass Layoffs Amidst Focus on Growth Areas

Third Largest Layoff Round in Recent History

August 9th, 2024, Reuters - Cisco Systems, a leading provider of computer networking equipment, announced another round of layoffs this year, with thousands of employees set to lose their jobs. This follows an earlier round of cuts made earlier in 2024. The layoffs are part of Cisco's strategy to prioritize growth areas and maintain financial stability. According to the company, it will focus on expanding its software services, artificial intelligence (AI), and security offerings. This second round of layoffs is particularly significant as it marks the third and largest downsizing initiative undertaken by Cisco in recent years. This follows similar moves made by other technology giants in recent months, including Intel Corp., which announced plans to cut 15,000 employees. Cisco will incur costs between $700 million and $800 million in the first quarter of fiscal 2025 as a result of the layoffs. These costs will primarily cover severance and other employee-related expenses. The announcement has sent shockwaves through the tech industry, highlighting the ongoing challenges faced by even the most established companies. As the global economy continues to navigate an uncertain environment, further job cuts within the sector are not ruled out.