More than 4,000 employees will be laid off by Cisco Systems

Cisco Systems, the pioneer of Internet networking, is laying off over 4,000 workers as part of a trend that has helped increase their profits and stock prices.

As part of a trend that has helped boost their profits and stock prices, Internet networking pioneer Cisco Systems is letting go of more than 4,000 employees. This move serves as a sobering reminder of the job insecurity that hangs over an industry that is increasingly embracing artificial intelligence.

The widespread layoffs, which were revealed on Wednesday along with Cisco's most recent quarterly earnings, account for around 5% of the company's 84,900 global workforce. The purge comes after Cisco's 5,000 job losses in late 2022 and before the company's $28 billion acquisition of Splunk, which management now projects to close by April 30. Cisco, a business best recognized for producing a large portion of the internet's connecting infrastructure, estimates that its reorganization will cost an additional $800 million. Other well-known tech companies, like Google and Amazon, have also been impacted by the double whammy of two large layoffs in two years. Both companies have reduced their payrolls, which had been gradually increasing, several times since the end of 2022.

Despite significant reductions, most corporations continue to generate large profits. Cisco's reorganization follows significant layoffs at Google, Alphabet, Microsoft, TikTok, Riot Games, eBay, and PayPal. These workforce reductions, combined with last year's wave of layoffs, have further increased profits and raised overall market values for these companies.