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

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

4 hours ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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#USJobsReport #FederalReserve #StockMarket #MacroRisks #JapanEconomy #GlobalMarkets #CurrencyTrading #EconomicUpdate

Money

Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Published

1 day ago

February 11, 2026

Harvey Vargas

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

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Money

AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Published

1 day ago

February 11, 2026

Harvey Vargas

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech