Updated February 10th, 2024 at 13:56 IST
Cisco plans job cuts to focus on high-growth sectors
The San Jose-based Cisco is said to be aiming to sharpen its focus on high-growth areas within the technology sector.
- 2 min read
Cisco job cuts: Network giant Cisco is reportedly preparing to undergo a major restructuring of its business operations, which could entail laying off thousands of employees, according to sources familiar with the matter.
The San Jose-based company, which currently boasts a workforce of approximately 84,900 employees as of fiscal year 2023, is said to be aiming to sharpen its focus on high-growth areas within the technology sector.
While the exact number of employees to be affected by the layoffs is still being determined, sources suggest that an announcement regarding the restructuring may be forthcoming as early as next week, ahead of the company's scheduled earnings call on February 14.
This prospective move follows a similar restructuring initiative announced by Cisco in November 2022, during which approximately 5% of its workforce was impacted, resulting in $600 million in severance and related charges.
In response to inquiries, Cisco declined to provide any comments regarding the reported workforce restructuring.
The potential workforce reduction at Cisco coincides with similar cost-cutting measures undertaken by other technology companies, such as Nokia and Ericsson, which saw major job cuts last year as part of efforts to streamline operations and reduce expenses.
Moreover, several prominent tech firms, including Amazon, Alphabet, and Microsoft, have recently implemented workforce reductions, signalling a broader trend within the industry.
Cisco's decision to restructure its workforce comes amid a challenging business environment characterised by a slowdown in demand for its networking equipment, as evidenced by the company's downward revision of its full-year revenue and profit forecasts in its previous earnings call.
Citing a slowdown in orders, Cisco attributed the weakness in demand to customers' focus on deploying and integrating products within their respective environments.
In response to these market dynamics, Cisco has been actively diversifying its offerings, particularly in software solutions such as cybersecurity, as it seeks to navigate supply chain disruptions and adapt to evolving customer preferences in the post-pandemic landscape.
(With Reuters inputs)
Published February 10th, 2024 at 13:56 IST
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