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…
