Cisco to slash jobs again as it sets sights on new growth opportunities

Feb. 12, 2024
The company plans to let thousands of employees go as it looks to realign its business around high-growth segments.

According to a Reuters report, Cisco is moving forward with plans to restructure the company, which calls for dismissing thousands of employees to focus on high-growth technology opportunities. 

Citing three sources familiar with the matter, the Reuters report revealed that Cisco has yet to determine how many employees will be affected by the move.

Cisco, which will announce its earnings on Wednesday, could make an official announcement this week.

This is not the first time Cisco has conducted layoffs. During an earnings call in November 2022, the company announced
restructuring that impacted roughly 5% of its workforce, which led to $600 million in severance and other charges.

Cisco is not alone in making such workforce cuts.

Nokia and Ericsson laid off thousands of its employees in 2023 as a cost-cutting measure. Also,  Amazon, Alphabet and Microsoft recently announced layoffs.

During its first quarter 2024 earnings call, Cisco reduced full-year revenue and profit forecasts, noting that its service provider customers were focused on installing and implementing products they purchased from the vendor.

At that time, Chuck Robbins, CEO of Cisco, said, "The bottleneck that we previously saw in the supply chain has now shifted downstream to implementation by our customers and partners."

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