Tuesday, October 21, 2025
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Cisco Restructures; Possibility of Thousands of Jobs Cut 

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 In a strategic move aimed at realigning its business priorities, Cisco Systems, a global leader in networking and technology solutions, has announced a significant workforce reduction. 

The company plans to lay off approximately 7% of its employees, marking its second round of job cuts this year.

While Cisco did not specify the exact number of jobs affected, based on its workforce size of 84,900 employees as of July 2023, the reduction would amount to about 5,900 positions.

The Shift in Focus at Cisco

Cisco’s decision to trim its workforce comes as it redirects its attention toward high-growth areas within the technology landscape. The company aims to position itself at the forefront of artificial intelligence (AI) and cybersecurity.

By streamlining operations and investing in these critical domains, Cisco seeks to remain competitive in an ever-evolving industry.

AI Investments and Partnerships: Earlier this year, Cisco pledged to invest $1 billion in tech startups specializing in AI.

Collaborations with companies like Cohere, Mistral, and Scale are part of this initiative, with the goal of developing reliable AI products.

Additionally, Cisco recently announced a strategic partnership with Nvidia, a leading AI hardware and software provider, to create robust infrastructure for AI systems.

The Cybersecurity Readiness Index: In March, Cisco launched a cybersecurity readiness index, underscoring its commitment to helping businesses enhance their resilience against cyber threats.

As organizations face increasingly sophisticated attacks, Cisco’s expertise in network security positions it well to address the growing demand for robust cybersecurity solutions.

Cisco Financial Performance and Market Response

Despite the layoffs, Cisco’s financials remain closely watched. In its fiscal fourth quarter ending July 27, 2024, the company reported a 45% decline in net earnings compared to the same period the previous year. 

Adjusted earnings per share stood at 87 cents, while revenue dipped 10% to $13.64 billion. Analysts had anticipated slightly higher earnings, but Cisco’s performance still exceeded expectations.

Market sentiment has been cautiously optimistic. Following the layoff announcement, Cisco’s stock rose approximately 6% in after-hours trading.

Investors seem to appreciate the company’s proactive approach to adapting to market dynamics.

Industry Context

Cisco’s restructuring mirrors broader trends in the tech sector. Other major players, including Intel, have also implemented workforce reductions in recent times. 

Intel’s decision to cut about 15,000 jobs underscores the competitive pressures faced by established tech giants as they grapple with the rise of agile competitors like Nvidia and AMD.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus