'Cisco to cut thousands of jobs as it seeks to focus on high growth areas'

‘Cisco to cut thousands of jobs as it seeks to focus on high growth areas’

Cisco Systems is set to undergo a significant restructuring that will result in the dismissal of thousands of its workforce, aiming to pivot towards sectors with higher growth potential, as per information from three individuals briefed on the plans.

Based in San Jose, California, Cisco reported having 84,900 employees for the fiscal year 2023, as per its website.

As per a Reuters report, details regarding the exact number of employees who will be impacted by the job cuts are still under deliberation.

The company might announce these changes by next week, aligning with its scheduled earnings discussion on February 14, the Reuters report said.

Previously, in November 2022, Cisco disclosed a restructuring plan during an earnings call that affected about 5% of its staff, resulting in $600 million in severance and related expenses.

This development occurs as numerous technology firms, including telecommunications equipment manufacturers Nokia and Ericsson, have recently reduced their workforce to cut costs.

Other major technology corporations like Amazon, Alphabet, and Microsoft have also announced layoffs in the past few weeks.

In its last earnings announcement, Cisco adjusted its revenue and profit expectations for the full year downward, indicating a deceleration in the demand for its networking products.

The company attributed this downturn to a decrease in orders during the first quarter, noting that “customers are currently focused on installing and implementing products in their environments.”

Cisco has faced challenges with supply chain disruptions and a decline in demand following the pandemic, accelerating its shift towards software solutions, including cybersecurity.

Here is a rundown of layoffs announced so far in 2024:

• Microsoft is cutting around 1,900 jobs at gaming divisions Activision Blizzard and Xbox.
• IBM plans to lay off some employees in 2024, but will hire more for AI-centered roles.
• E-commerce firm eBay plans to cut about 1,000 roles, or around 9% of its current workforce.
• Videogame software provider Unity Software to cut about 25% of workforce, or 1,800 jobs.
• DocuSign plans to reduce its current workforce by about 6%, or 400 employees, with majority of layoffs in its sales and marketing organizations.
• Snap plans to cut around 528 jobs, or 10% of its global workforce.
• Salesforce is laying off about 700 employees, or roughly 1% of its global workforce.
• Network giant Cisco is planning to restructure its business which will include laying off thousands of employees.
• Autonomous vehicle technology company Aurora Innovation lays off 3% of its workforce.

(With inputs from Reuters)

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