Cisco is chopping 4,000 jobs in a transfer that can cut back its workforce by about 5%.
The IT {hardware} and software program maker mentioned the cuts, introduced alongside its quarterly outcomes on Wednesday, will lead to prices of $800 million associated to severance packages and advantages. It has about 85,000 workers.
Cisco’s layoffs are a part of plans to “realign the group and allow additional funding in key precedence areas”, it mentioned in a SEC submitting.
CEO Chuck Robbins mentioned within the earnings report: “We proceed to align our investments to future development alternatives. Our innovation sits on the middle of an more and more related ecosystem and can play a essential function as our clients undertake AI and safe their organizations.”
It is the most recent instance of a tech firm chopping jobs regardless of being in good monetary well being. Cisco posted quarterly web revenue of $2.6 billion, simply $200 million decrease than the identical interval final yr.
Cisco can also be strengthening its partnership with Nvidia to assist firms construct their very own AI infrastructure. Final week Cisco mentioned it might begin promoting Nvidia’s Ethernet options.
Nvidia CEO Jensen Huang mentioned in a press launch: “Corporations in all places are racing to rework their companies with generative AI.”
He added that the partnership would assist make it simpler for firms to construct infrastructure for AI, which he known as “essentially the most highly effective expertise pressure of our lifetime.”
Cisco’s job cuts observe mass layoffs hitting the tech business in January. A complete of 34,560 workers have been laid off throughout 144 tech companies up to now this yr, in keeping with Layoffs.fyi information.
Cisco didn’t instantly reply to Enterprise Insider’s request for remark.
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