Another AI-Driven Job Cut: Cisco Lays Off 4,000 Employees, CEO Calls It Hard Decision To Win In 'AI Era'
Announcing the decision to reduce human resources, Cisco Chief Executive Officer (CEO) of Cisco, Chuck Robbins, said that the company has decided to lay off 4,000 employees amid the firm’s automation push. The US tech firm’s CEO said the company has to take the hard decisions in AI era.
The CEO shared the communication in an internal memo that company needed to make hard decisions to win in the AI era. The Cisco becomes the latest tech firm to reduce its workforce, joining the likes of Meta, Amazon, and Oracle.
Read Also: Cognizant To Cut Over 4,000 Jobs Globally As AI Focus Increases
As per the CEO’s directive, the restructuring will impact less than 5 per cent of the company’s global workforce, which is expected to be around 80,000 employees. The company will send notification to the employees on May 14 regarding their termination.
As per the memo, Cisco will provide an adjusted bonus payment to impacted workers, along with benefits and resources. The company will also offer all Cisco U courses and certifications for those impacted employees.
“For those who will continue here, we will discuss these changes and answer questions at the Cisco Beat on May 21 at 8 a.m. PT. We have important, impactful, and consequential work ahead. Your focus, resilience, and leadership are vital to our growth and relevance in FY27 and beyond,” the memo’s conclusion reads.
