Cisco plans to lay off thousands of employees as part of a business restructuring aimed at focusing on growth areas. The decision follows a decrease in demand for their products, prompting the company to realign its resources to adapt to changing market conditions.
Cisco is gearing up to lay off thousands of employees as part of a business restructuring, although the exact number of affected employees remains undisclosed. The final announcement is anticipated later this week.
Cisco, a USA-based communication tech firm, is set to reduce its employee count to prioritize growth areas. Reuters reports that the company is planning a business restructuring, which will entail laying off thousands of employees.
Cisco has yet to reveal the precise number of employees who will be impacted by these layoffs. However, according to a source familiar with the matter, the company is still deliberating on the figures, and the final announcement may come as early as this week, coinciding with its earnings call scheduled for February 14.
With a global workforce of 84,900 employees in fiscal 2023, Cisco is poised for a significant reduction in its workforce due to the impending job cuts. The company had previously announced a workforce reduction of about 5% during an earnings call in November 2022, resulting in $600 million in severance and other expenses.
Cisco has reportedly experienced a decline in demand for its products, prompting the networking equipment maker to lower its full-year revenue and profit forecasts during its previous earnings call. The company attributed this weakness to a slowdown in orders in the first quarter, stating that “customers are currently focused on installing and implementing products in their environments.”
Cisco’s situation reflects broader trends in the tech sector, which has historically been resilient and innovative but is now grappling with layoffs and uncertainty. Since the end of 2022, many companies in the tech industry have opted to reduce their workforce and lay off thousands of employees globally as a cost-cutting measure to prioritize profits. Despite the challenges faced in 2022 and 2023, the trend of layoffs has persisted, indicating ongoing uncertainty in the industry.
The beginning of 2024 has ushered in another wave of layoffs in the tech sector, although not as extensive as the previous year’s layoffs. However, the initial layoffs hint at a high likelihood of significant job cuts in the future. According to Layoffs.fy, more than 32,000 employees have been laid off by various companies. The reasons behind these layoffs vary and include restructuring efforts, cost-cutting initiatives, and a slowdown in demand for certain products and services.
Nokia, the telecom maker, is set to cut over 10,000 jobs globally, including 1,400 in India, as part of its restructuring plans. This decision follows the company’s earlier announcement in October 2023 to slash up to 10,000 jobs to enhance profitability. Additionally, Nokia has appointed a new head for its operations in India as part of its restructuring efforts.
Several other prominent tech firms have also initiated layoffs in recent weeks. Amazon, Alphabet (the parent company of Google), and Microsoft have all downsized their workforce across different divisions and regions. Additionally, some startups have followed suit, including Snap, the parent company of Snapchat, which announced a global headcount reduction of 10%, affecting 540 employees. Similarly, eBay, the e-commerce platform, revealed plans to lay off 1,000 employees after significantly expanding its workforce during the pandemic.
Read more Tech News
