Cisco Lays Off 5,500 Workers to Invest More in AI, Despite Making $10.3 Billion in Profit
Cisco posted $10.3 billion in profits last year but is still laying off 5,500 workers as part of an effort to invest more in AI.
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“We need to lay off people to focus on AI innovation” is an increasingly popular smokescreen for companies to whitewash aggressive downsizing as investing in innovation.
AI is becoming the narrative framing of the season
Following Intuits footsteps - a company significantly impaired by the IRS launching free online tax-filing and various regulatory fines for predatory billing, Cisco is cynically applying an AI coat of paint to their cost cutting efforts in the hope of confusing investors about their AI related potential.
AI related efficiency gains are real and a contributing factor for many layoffs, but the companies parading them most aggressively are not the companies in a position to leverage said efficiency gains yet.
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