Cisco, the world’s leading technology company, recently made a big decision. In a letter to employees, CEO Chuck Robbins said about 4,000 workers worldwide would be laid off. After big companies like Meta, Amazon and Oracle, Cisco is now choosing to reduce their workforce.
Surprisingly the company did not make this decision at a loss. Instead, the company posted revenue of $15.8 billion in the latest quarter, up 12 percent from the same period last year. Still, citing reasons why employees are being laid off, the CEO says the company has had to make some tough decisions to move forward in this new era of artificial intelligence or AI. The company is taking this step to change its investment direction in view of future opportunities and demands.
Less than 5 percent of the company’s total employees will lose their jobs in layoffs. Cisco currently employs approximately 80,000 employees worldwide. However, it is not yet clear which category will be affected the most. The company will begin formally notifying employees affected by Cisco’s 17 percent increase in May after news of the layoffs broke.
The company has assured the employees who have lost their jobs that it will provide appropriate financial assistance and due bonuses at a cost to the company of about $1 billion. In addition, the affected employees will be assisted in finding new jobs and will be given free access to various Cisco courses for one year to enhance their skills. Chuck Robbins said the company will now provide greater focus and investment in advances in silicon, optics, cybersecurity and artificial intelligence.
