back to article Cisco plans to slash thousands more jobs amid AI, cybersecurity push

Networking goliath Cisco will reportedly slash thousands of jobs as it focuses on growing its cybersecurity business and capitalizing on AI demand. According to a Reuters report citing unknown persons "familiar with the matter," the second round of layoffs is expected to be similar in scope, or potentially slightly larger than …

  1. ecofeco Silver badge
    Pirate

    AI and security push?

    Here's what I hear: "We've dumped a lot of money into AI and seen no profit from it, so we have to cut costs somewhere."

    i.e., the usual: "We fecked up and so our employees will suffer for it."

    1. Anonymous Coward
      Anonymous Coward

      Re: AI and security push?

      +1 for correct use of the word "fecked".

      :-)

    2. Michael Wojcik Silver badge

      Re: AI and security push?

      "We've been disappointed by get-rich-quick schemes before, but surely this scheme will get us rick, and quickly!"

      As someone with an old friend who (last I checked) works for Cisco, I'm disappointed to hear about the layoffs. (I mean, I'd be disappointed anyway; as far as I'm concerned, layoffs are an admission of failure by the corporation.)

      As someone who has to use Cisco end-user software such as Webex and Jabber on a regular basis, I feel acquiring more software is not a great way for them to be applying resources.

  2. Anonymous Coward
    Anonymous Coward

    Shifting business

    You can now buy 400Gb ports from a number of OEMs/ODMs for about $250 a port. They are so cheap it makes more sense to buy 400Gb ports and clock them down to whatever you need than to buy anything less.

    SonicOS is out there and can do just about anything needed, including the RoCE and other exotic tunings for the new AI mania.

    Cisco is a 40 year old business model of charging a premium for hardware, a premium for support, and premium for anything else they can think of...they actually last had a superior product sometime late in the 20th century.

    Now that ethernet ports are finally becoming commoditized and there are practical open source alternatives, sales are shrinking. The holdouts will be the shops with CIOs that are either being greased on the back end by Ciscos oh-so-ethical sales droids, or just select Cisco based on Layer 10 implementation.

    (For those that don't know, the OSI model has 10 layers, not seven. Besides the practical 7, there is also:

    Layer 8: Financial

    Layer 9: Political

    Layer 10: Religious

    Cisco usually gets selected because of compliance with Layer 10 "We're a Cisco shop!" CIOs - which overcomes the Layer 8 objections despite the fact the people who actually work and tune networks know damn well there is better stuff out there)

    Anonymous because of Layer 9.

    1. Paul Crawford Silver badge

      Re: Shifting business

      If I could upvote more than once!

      For years Cisco have charged over the odds for equipment that is no longer that special. There are others that have good enough networking kit for a fraction of the cost and unless you are deeply wedded to the Cisco system it is a no-brainer to go for them instead. It is insulting these days to have to "license" ports on hardware you have already bought! A pox on them all...

      1. collinsl Silver badge

        Re: Shifting business

        > It is insulting these days to have to "license" ports on hardware you have already bought!

        Tell that to Brocade and their fibre switch "port packs"!

      2. Charlie Clark Silver badge

        Re: Shifting business

        Like so many, they used to be a shop that championed inhouse development. Then, along with the others, it discovered that innovation was something you buy. As a result Cisco's software offerings look like what they are: a collection of disparate packages that haven't been updated for years because the original developers left before they were sacked after the acquisition.

    2. Michael Wojcik Silver badge

      Re: Shifting business

      Thanks. I've been looking into RoCE a bit lately (not for AI, but for Doing Actual Useful Work), and I was curious whether it's really a suitable alternative to RDMA over InfiniBand. From what I've seen so far, it appears to be.

  3. FirstTangoInParis Bronze badge

    Nvidia already bought Mellanox …

    … and their kit is pretty damn hot and nowhere near as expensive as Cisco.

    1. Charlie Clark Silver badge

      Re: Nvidia already bought Mellanox …

      …not yet…

  4. NoneSuch Silver badge
    Thumb Down

    They were going to do it anyway. Now they are using the AI tag to lose it in the mass of other news releases.

  5. Snake Silver badge

    Terrible, just terrible

    Only $1.9 BILLION net for Q3. How can we, mere peons, stand by while they make so little money??

    We simply *must* acknowledge their 4,000 person layoffs as wrote doctrine, lest the C-Suite lose their year-end bonuses and Wall Street sees a $0.01 dividend loss.

    Perish the thought.

  6. Anonymous Coward
    Anonymous Coward

    AI

    The only tech where you need to know the answer, before you ask the question, to know if it answered correctly.

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