Cisco layoffs: Thousands to lose jobs as company focuses on ‘high-growth’ areas

Author:Arya Vaishnavi 2024-02-11 00:50 28

Amid the recent layoffs by multiple tech and retail giants, Cisco has also decided to cut jobs. As a part of its restructuring program, the multinational network corporation has announced its decision to axe thousands of jobs, per Reuters. The San Jose-based company, which has a total employee count of 84,900, is seeking to focus on “high-growth” areas.

Cisco announces its decision to lay off thousands of employees(AP)

Cisco to layoff thousands of employees as part of its restructuring plans

The outlet adds that while the company has announced its layoffs, it is yet to decide the number of employees that will be affected. As Cisco prepares for its earning calls on February 14, the job cut-offs could be revealed “as early as next week.” Cisco's prior job cuts were also part of another restructuring plan, which “lead to $600 million in severance and other charges.” The company previously laid off about 5% of its workforce, which equates to 4,100 employees in November 2022, according to the outlet.

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Cisco blames the decrease in projected revenue on slowdown in orders

This news comes months after Cisco slashed its revenue guidance. In January, the California network giant's projected revenue suffered a 6.6% drop and a decrease in adjusted earnings per share, as per the outlet. The outlet further adds that while the company refused to comment on its recent decision, the move comes at a time when several tech companies, including Nokia and Ericsson, axed thousands of jobs last year in a bid to lower costs.

Additionally, retail giants like Amazon, Google, and Microsoft recently announced significant layoffs. After cutting off its revenue and profit forecasts in the previous earnings call, Cisco blamed the weakness on a decrease in orders during the first quarter. “Customers are currently focused on installing and implementing products in their environments,” the company said, per the outlet.

Title:Cisco layoffs: Thousands to lose jobs as company focuses on ‘high-growth’ areas