Cisco lays off 4,000 people at newest health technology company

• Cisco will reduce its workforce by 5%, to approximately 4,000 people.
• The job cuts are part of the company’s plan to reorganize and invest in key priority areas.
• Cisco is also expanding its partnership with Nvidia to help enterprises build AI infrastructure.

Cisco is cutting 4,000 jobs, reducing its workforce by about 5%.

IT hardware and software manufacturers The company said it would incur $800 million in costs related to severance and benefits due to the layoffs, which were announced alongside Wednesday’s quarterly results. We have approximately 85,000 staff members.

Cisco’s job cuts are part of a plan to “realign the organization and enable further investment in key priority areas,” the company announced. SEC filing.

CEO Chuck Robbins stated in its earnings report: “We continue to align our investments with future growth opportunities. Our innovations are at the center of an increasingly connected ecosystem, helping our customers deploy AI and protect their organizations. It will play an important role.”

This is the latest example of a technology company cutting jobs despite its financial health. Cisco’s net income for the quarter was $2.6 billion, down just $200 million from the same period last year.

Cisco is also strengthening its partnership with Nvidia to help businesses build their own AI infrastructure. Cisco announced last week that it would begin selling Nvidia’s Ethernet solutions.

Nvidia CEO Jensen Huang said: press release: “Companies around the world are racing to transform their businesses with generative AI.”

He added that the partnership will make it easier for companies to build infrastructure for AI, which he called “the most powerful technological force of our lifetime.”

Cisco’s job cuts follow mass layoffs that hit the tech industry in January. So far this year, a total of 34,560 employees have been laid off at 144 tech companies, according to Layoffs.fyi data.

Cisco did not immediately respond to Business Insider’s request for comment outside of normal business hours.

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