TapTechNews August 10th news, Reuters reported today (August 10th) that Cisco, after laying off 4,000 people in February this year, is planning to launch the 2nd round of layoffs this year, and it may be announced as early as in the 4th fiscal quarter (ending July 29th).
TapTechNews quoted the media report that the scale of this layoff is estimated to be close to or slightly higher than that in February this year, meaning that about 4,000 more employees will be affected.
According to the company's annual filing, as of July 2023, the total number of employees in the company is approximately 84,900 (this number does not include the layoffs in February).
After Reuters first reported the company's layoffs, its stock price fell by nearly 1%. As of the close on Thursday, the stock has fallen by more than 9% this year.
Cisco is the largest manufacturer of routers and switches and has been struggling with weak demand and supply chain limitations in its main business. The company has taken some measures to diversify, such as acquiring the cybersecurity company Splunk for $28 billion (TapTechNews note: currently about 200.958 billion yuan).
Cisco is also actively exploring the subscription model to reduce excessive reliance on equipment sales.
The company has been working hard to incorporate AI products into its products and reaffirmed in May the goal of $1 billion in orders for AI products by 2025. In June, the company launched a $1 billion fund to invest in AI start-ups such as Cohere, MistralAI, and ScaleAI.