Cisco Systems recently announced the layoff of 5,600 employees as part of its broader strategy to focus on AI development and automation. This reduction, representing around 7% of its workforce, marks the second wave of layoffs at the company this year, following a similar cut earlier in 2024. Despite Cisco’s strong financial performance, with nearly $54 billion in annual revenue reported, the company cited the need for increased efficiency and a more streamlined approach as the rationale for these layoffs
Interestingly, the cuts have affected key divisions, including Talos, Cisco’s security arm responsible for threat intelligence and cybersecurity. This has raised eyebrows given the rising importance of cybersecurity amidst growing cyber threats globally. Employees have expressed frustration with the lack of communication leading up to the layoffs, contributing to what has been described as a “toxic” work environment
Cisco’s pivot to AI and automation reflects a broader trend in the tech industry, where companies are making tough decisions to balance innovation with cost-cutting. The company believes this restructuring will enable it to focus on key growth areas such as AI, cloud computing, and enterprise security solutions. However, for many employees, this shift has come at a personal cost, and the morale at the company has been notably shaken