Money

Cisco lays off 4000 workers to focus on AI

Published

2 years ago

February 16, 2024

Ahron Young

Cisco has unveiled plans to reduce its workforce by approximately 5%, equating to around 4,250 employees worldwide.

This strategic move comes as Cisco intensifies its emphasis on artificial intelligence initiatives.

The layoffs, projected to incur pre-tax charges totaling $800 million related to severance and benefits, signify Cisco’s commitment to directing resources towards high-growth sectors such as AI and software development.

During an investor briefing on Wednesday, Cisco CEO Chuck Robbins articulated the rationale behind the decision, stating, “Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”

Apple takes Israeli spyware firm to court over hacking

Job cuts

The announcement of the job cuts coincided with Cisco’s quarterly earnings report, where the company also revised its annual revenue forecast downward from a potential $55 billion to a range between $51.5 billion and $52.5 billion.

Robbins acknowledged the challenges in certain market segments, stating, “We also continue to see weak demand with our telco and cable service provider customers.”

As part of its AI-focused strategy, Cisco recently expanded its collaboration with semiconductor giant Nvidia, aiming to provide enterprises with simplified cloud-based and on-premises AI infrastructure.

This partnership encompasses networking hardware and software tailored to support advanced AI workloads.

Own tech

Furthermore, Robbins highlighted Nvidia’s commitment to utilising Cisco’s ethernet alongside its own technology, particularly prevalent in data centers and AI applications.

In the second quarter of fiscal year 2024, Cisco reported an adjusted profit of 87 cents per share and revenue of $12.79 billion, surpassing estimates from the London Stock Exchange Group.

Money

Big tech stocks slide amid AI spending concerns

Tech giants like Microsoft and Amazon lose billions as investors prioritize earnings over AI, while TSMC and Samsung thrive.

Published

3 hours ago

February 17, 2026

Harvey Vargas

Tech giants like Microsoft and Amazon lose billions as investors prioritize earnings over AI, while TSMC and Samsung thrive.

Microsoft, Amazon, Apple, Nvidia, and Alphabet have all suffered steep losses this year, with Microsoft dropping 17% and Amazon falling nearly 14%. Investors are growing cautious as AI spending concerns weigh heavily on valuations.

This shift signals a market focus on immediate earnings rather than the long-term promise of AI, marking a notable change in investor sentiment across the tech sector.

Despite the setbacks for these giants, the tech landscape is not uniform, with other companies managing to grow despite market turbulence.

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Money

AI fears rattle global markets and investors

AI developments cause market volatility, with European software and US tech firms facing significant declines amid rising uncertainty.

Published

1 day ago

February 16, 2026

Harvey Vargas

AI developments cause market volatility, with European software and US tech firms facing significant declines amid rising uncertainty.

Global stock markets are experiencing heightened volatility as concerns about AI disruption sweep across industries. Investors are closely monitoring which sectors could be most affected as the technology continues to evolve.

Recent announcements from major US AI companies sent waves through international markets, highlighting the interconnected nature of global finance and technology. European software giants such as Dassault Systèmes and RELX saw significant declines, underscoring the global reach of AI developments.

UBS analysts warn that the impact of AI disruption could intensify in 2026 and 2027, with potential ramifications for a wide range of sectors.

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Money

U.S. stocks falling amid AI worries and weak earnings

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

Published

4 days ago

February 13, 2026

Harvey Vargas

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

U.S. stocks are tumbling as investors grow concerned over AI profitability and disappointing earnings. Defensive sectors are attracting attention ahead of the upcoming CPI report, while market participants are carefully watching how tech-heavy AI stocks are influencing broader indices. Steve Gopalan from SkandaFX notes that these factors are shaping market sentiment.

For traders, commodities like gold and oil are also playing a role in sentiment, providing hedges amid market uncertainty. The January jobs report and unemployment data are adding further context, with potential implications for Federal Reserve policy.

Market expectations for rate cuts are shifting as investors weigh economic indicators against global market dynamics. Traders are also eyeing currency movements, including the Australian Dollar and Japanese yen, for signs of broader economic trends.