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Abstract

llion in revenue.</p><p id="61ef">This news also saw their stock prices drop by a similar number, 5%.</p><h2 id="119c">Who/what is to blame?</h2><p id="e2d3">While the knee jerk reaction might be to blame AI, like most things it’s more nuanced.</p><p id="fed0">According to a <a href="https://www.reuters.com/technology/cisco-lay-off-5-workforce-2024-02-14/#:~:text=Feb%2014%20(Reuters)%20%2D%20Cisco,by%20tech%20firms%20this%20year.">report on Reuters</a> their CEO Charles Robbins said the following</p><p id="92dd" type="7">We also continue to see weak demand with our telco and cable service provider customers</p><p id="32f3">They also expect the demand for Cisco’s products to level off or even drop as many industries, including the telecom industry is restricting spending.</

Options

p><h2 id="3708">Partnering with Nvidia</h2><p id="a5b4">Robbins also went on to say</p><p id="5eb0" type="7">Nvidia (NVDA.O), agreed to use Cisco’s ethernet with its own technology that is widely used in data centers and AI applications</p><p id="8f11">This is done in part to allow Cisco to continue focusing on it’s artificial intelligence (AI) with partners such as Nvidia, to boost growth.</p><h2 id="e6b2">Conclusion</h2><p id="3964">AI might be partially to blame, but Cisco also believes AI might be part of their key to future growth, only time will tell.</p><p id="821b">But with uncertainty in the global ecconomy and the continued disruptions caused by AI, Cisco is just the latest in an ever growing list of Tech companies laying people off in droves.</p></article></body>

Cisco Networks laying off 5% of their work force

Can this be blamed on AI?

$800 Million in severance

Cisco currently has over 85000 employees world wide, and this layoff will be a little over 5000 of those employees.

The estimated, pretax severence payoffs is $800 Million. That’s a huge amount for you and me to imagine, but last year they did over 12 Billion in revenue.

This news also saw their stock prices drop by a similar number, 5%.

Who/what is to blame?

While the knee jerk reaction might be to blame AI, like most things it’s more nuanced.

According to a report on Reuters their CEO Charles Robbins said the following

We also continue to see weak demand with our telco and cable service provider customers

They also expect the demand for Cisco’s products to level off or even drop as many industries, including the telecom industry is restricting spending.

Partnering with Nvidia

Robbins also went on to say

Nvidia (NVDA.O), agreed to use Cisco’s ethernet with its own technology that is widely used in data centers and AI applications

This is done in part to allow Cisco to continue focusing on it’s artificial intelligence (AI) with partners such as Nvidia, to boost growth.

Conclusion

AI might be partially to blame, but Cisco also believes AI might be part of their key to future growth, only time will tell.

But with uncertainty in the global ecconomy and the continued disruptions caused by AI, Cisco is just the latest in an ever growing list of Tech companies laying people off in droves.