Cisco is cutting 7% of its workforce, approximately 6,000 employees, as part of a restructuring plan focusing on AI and security. The company expects to incur up to $1 billion in pre-tax charges related to severance and restructuring costs. This move follows declining revenues, particularly in its core networking business, while security product revenues have increased. Cisco aims to pivot resources towards faster growth areas, including AI and cybersecurity, amidst a broader trend of layoffs in the tech industry.
Why do we care?
This layoff is a strategy change. It’s important to note that Cisco’s leadership is changing it’s product and services mix, and need to change the people at the organization to do so. Not all layoffs are the same, and I wanted to highlight that here. Let’s not read too much into it.