Global technology leader, Cisco, is preparing to announce another significant round of layoffs, marking its second workforce reduction in 2024 as the company refocuses on key areas like cybersecurity and artificial intelligence (AI). Reports suggest that the number of affected employees could be around or slightly exceed the 4,000 workers let go in February 2024, with an official announcement expected around August 15, coinciding with Cisco’s fourth-quarter financial results.
As of July 2023, Cisco employed approximately 84,900 people, excluding those affected by the earlier layoffs this year. The company, which operates in over ten African countries, including South Africa, Nigeria, and Kenya, appointed David Meads as Vice President for its Middle East and Africa operations in May 2024.
Cisco, traditionally known for its routers and switches, has faced challenges such as slow demand and supply-chain disruptions. In response, the company has diversified its offerings, including the $28 billion acquisition of cybersecurity firm Splunk in March 2024. This strategic move aims to reduce Cisco’s reliance on hardware sales and strengthen its subscription services.
The acquisition of Splunk, along with a favorable fourth-quarter forecast, led to a 4% rise in Cisco’s shares in pre-market trading in May 2024. The tech giant has also been aggressively integrating AI into its products, with a target of $1 billion in AI product orders by 2025. In June, Cisco launched a $1 billion fund to invest in AI startups, advancing its focus on generative AI, machine learning, and AI integration.
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