Cisco cuts 5% of workforce in restructuring

by Time Doctor
Cisco layoffs

The computer networking company Cisco has announced a significant reduction in its global workforce, which has had a ripple effect throughout the industry. This choice is part of a larger pattern wherein significant IT corporations have been reassessing their resources and strategy in response to economic difficulties. In this article, we explore the ramifications of Cisco’s workforce reductions and its proactive emphasis on artificial intelligence (AI).

More than 4,000 jobs will be removed

With Cisco’s recent declaration that it will be reducing its staff by 5%, over 4,000 employees will be facing layoffs. The company’s commitment to a more extensive restructuring strategy, which aims to reallocate resources and streamline operations, is reflected in this decision. 

The impact of this loss is enormous, highlighting the IT industry’s continual adaptations to a changing economic scenario, given that as of July 2023, its headcount was projected to be close to 85,000. Cisco expects to spend almost $800 million on severance and other expenses, which illustrates the scope of this reorganization.

The broader context of the IT industry

Cisco is not alone itself during this difficult time. Giants in the tech sector, like Amazon, Meta, Microsoft, Dell, and Alphabet (Google’s parent firm), have laid off a large number of employees in the last year. 

According to CNBC, these corporations have together lost thousands of jobs. The industry has been battling headwinds from inflation and a consumer spending climate that has resulted in lower spending on infrastructure related to technology and advertising. 

Cisco, a provider of networking equipment, has been negatively impacted by the constrained budgets of its commercial clients.

The push for computerized intelligence

Cisco is forging ahead with a strategic focus on artificial intelligence in spite of these obstacles. The reorganization plan was emphasized in the company’s second-quarter results report as a means of realigning the business and encouraging investment in important areas, most notably AI. 

In expressing the company’s strategy, Cisco CEO Chuck Robbins highlighted the importance of innovation in a network that is becoming more interconnected. Cisco wants to remain at the forefront of offering the required tools and solutions as clients shift their focus to safeguarding their enterprises and using AI.

Cisco’s prospects for the future

A potential channel for development is presented by Cisco’s concentration on artificial intelligence as it moves through this time of transformation. 

The company’s commitment to matching its investments with prospects for future growth points to a proactive strategy for resolving present issues. 

Cisco is not only addressing the present need for restructuring by placing a high priority on AI innovation, but it is also establishing itself as a leader in the upcoming wave of technological developments.


Cisco’s news of layoffs is a momentous time for the corporation and the IT sector as a whole. It also denotes a strategy change toward making artificial intelligence a primary area of concentration. 

The future of technology and the roles that IT giants like Cisco will play in it will be greatly influenced by their ability to innovate and adapt to the challenges posed by the present economic environment. 

Participants and watchers in the industry will be keenly following Cisco as it moves through this reorganization period and towards a future focused on innovation and artificial intelligence.

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