A new multinational that announces layoffs. Telecommunications equipment maker Cisco reported that it plans to cut its workforce by 5%, meaning it will eliminate around 4,250 jobs. It has a workforce of around 85,000 employees, as reflected by the company in its latest annual report.
This information was released on the same day that Cisco presented its financial statement for the second quarter of the fiscal period, in which it reported that the earnings per share and revenue that were forecast were met, although by a slim margin. He also took the opportunity to present forecasts for the third fiscal quarter similar to those of the second.
The main reason that will lead Cisco to reduce its workforce is the investment it wants to make in new technologies such as artificial intelligence (AI), as recognized by its executive director, Chuck Robbins, in statements reported by CNN:
We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.
Cisco is the last of the technology companies to announce layoffs in 2024: according to reports the website layoffs.fyi, there are already almost 35,000 layoffs carried out by a total of 144 companies in the sector since January 1, among which are big tech companies such as Microsoft, Alphabet and Amazon.
