Cisco Layoff News: The giant networking company Cisco is planning to lay off employees on a large scale. The company recently released its fourth quarter results, i.e. May to July, which were better than expected. Even after this, the company has planned layoffs on a large scale.
According to a report published in Money Control, the company may reduce its workforce by 7 percent. The company has given this information to the US exchange. This layoff may affect its 6,000 employees. This is the second time this year that the company has announced layoffs. Earlier in February 2024, the company had fired 4,000 people. This was 5 percent of the company’s workforce.
Why is Cisco preparing for layoffs?
Let us tell you that through this cut, Cisco wants to reduce its expenses and focus on cyber security and AI. According to the information given in the exchange filing in the US, this move can help the company to cut costs by $ 1 billion. The company will increase its spending on AI and cyber security with this. Cisco hopes that after this decision, the company will be able to save 700 to 800 million dollars by the first quarter of FY 2025. At the same time, the target is to save the remaining amount by the end of the year.
Cisco is investing in these AI companies
Cisco had announced to invest in AI startup companies Cohere, Mistral and Scale in June 2024. The company is going to invest $1 billion in these three startups. Apart from this, the company is going to work on AI in collaboration with Nvidia.
These big companies also did layoffs
Before Cisco, Intel had also announced the layoff of 15,000 employees. Before that, Dell had also announced the layoff of 12,500 employees. The process of layoffs in big companies is continuing in the year 2024. Big companies like Microsoft, Amazon, Google have announced layoffs of employees in the recent months.
Read this also-
SBI Interest Hike: SBI gave a shock to crores of customers, increased MCLR, EMI will increase by this much
