Cisco Systems, known for its widely used networking products, is planning a significant workforce reduction, with over 4,000 employees leaving.
Workforce of 84,900
With a total workforce of 84,900, this accounts for approximately 5% of the company’s total employee base. Cisco’s most recent major workforce reduction occurred at the end of 2022, when it laid off 5,000 employees shortly before acquiring Splunk for $28 billion.
Company’s Management
According to the company’s management, the transaction is now expected to be completed by April 30 of this year. Cisco expects the reorganisation to cost around $800 million.
Two large layoffs by 2 Big Co.
The announcement of two large layoffs in two years has reverberated throughout other major technology companies, including Google and Amazon.
Both companies, which previously had steadily expanding workforces, have gone through multiple rounds of workforce reductions since the end of 2022.
Mass layoffs announced by Cisco
The mass layoffs announced by Cisco are consistent with a broader trend observed across the technology sector, which has contributed to increased profitability and stock performance for companies while highlighting the prevailing job insecurity in an industry increasingly embracing artificial intelligence.
Despite remaining profitable entities, most companies are implementing these reductions. Cisco, headquartered in San Jose, California, reported earnings of $2.6 billion, or 65 cents per share, in its fiscal second quarter, which ran from October to January.
This represented a 5% decrease from the same period the previous year. Furthermore, revenue for the period fell 6% compared to the previous year, totaling $12.8 billion.
To read our blog on “Snapchat’s layoffs impacts 10% of its global workforce,” click here
