- Cisco, a global technology company, is reportedly set to announce another headcount reduction, marking a second round of layoffs this year as it focuses on areas such as cybersecurity and AI.
- According to Reutersthe number of employees affected could be around or slightly higher than 4,000 people laid off in February 2024. An announcement is expected as early as August 15, alongside the company’s fourth-quarter results.
As of July 2023, the company had approximately 84,900 employees, not including layoffs that occurred earlier in 2024.
The company is present in more than ten African countries, including Angola, South Africa, Nigeria, Kenya, Cameroon, Mauritius, Egypt, Algeria, Morocco, Senegal, Tunisia and Libya. In May 2024, the company appointed David Meads is appointed vice president of operations in the Middle East and Africa.
Cisco, known for its routers and switches that handle internet traffic, has struggled with demand and supply chain challenges. So the company has diversified its portfolio, including its $28 billion acquisition of cybersecurity company Splunk in March. The move is aimed at reducing its reliance on equipment sales and boosting its subscription services.
Following Cisco Systems’ acquisition of Splunk, shares rose about 4% in pre-market trading on May 16, 2024, boosted by positive fourth-quarter guidance and anticipated benefits from the $28 billion cybersecurity deal.
The tech giant has been actively integrating AI into its offerings, targeting $1 billion in orders for AI products by 2025. In June, he spear a $1 billion fund dedicated to investing in AI startups including Cohere, Mistral AI, and Scale AI. It has made more than 20 AI-focused acquisitions and investments in recent years, advancing generative AI, machine learning, and the integration of AI across its portfolio.
Cisco is following the lead of other global technology giants such as Meta And Google leveraging AI by integrating it into their products, with projections suggesting that AI could contribute up to $15.7 trillion for the global economy by 2030.
As AI adoption is a global trend, Africa stay behind. A preview of Oxford 2023 report shows that African countries rank at the bottom of the global AI readiness index, with sub-Saharan African countries accounting for 21 of the 25 lowest scores.
