Cisco Systems is cutting 7% of its workforce, marking its second round of layoffs this year as it prioritizes growth in artificial intelligence and cybersecurity.
The networking giant, which employed 84,900 people as of July 2023, did not disclose an exact figure but confirmed the reductions would be significant. In February, Cisco announced that it would eliminate about 4,000 positions as part of a broader restructuring effort.
“Our focus remains on driving innovation in key areas such as AI and security, ensuring we are well-positioned for the future,” a Cisco spokesperson said.
The company has ramped up investments in AI, committing $1 billion to startups like Cohere, Mistral, and Scale to accelerate the development of reliable AI products. Cisco also announced a partnership with Nvidia to enhance infrastructure for AI systems, further underscoring its strategic shift.
Cisco’s job cuts follow a broader industry trend of workforce reductions as companies realign to remain competitive. Just two weeks ago, Intel Corp. announced plans to lay off approximately 15,000 employees in an effort to regain ground against industry leaders Nvidia and AMD.
The latest layoffs highlight the rapid transformation within the tech sector, where firms are shedding traditional roles to invest in emerging technologies. Despite these changes, Cisco remains optimistic about its long-term growth strategy.
The company has not disclosed severance details or a timeline for the job reductions. However, industry analysts suggest the restructuring reflects the shifting priorities in Silicon Valley, where AI and cybersecurity are driving new opportunities—and disruptions.