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Cisco considers layoffs amidst business restructuring

Written by Tue 13 Feb 2024

Cisco is planning layoffs as part of a restructuring of its business. The decision could impact thousands of employees.

Reuters reported Cisco will seek to focus on high-growth areas, citing three sources familiar with the matter. Cisco has 84,900 employees as of fiscal 2023, according to the company website. One source said Cisco is yet to finalise the total number of employees impacted by the layoffs.

An announcement may arrive imminently, coinciding with the company’s earnings call scheduled for 14 February.

In its last earnings call, Cisco lowered its full-year revenue and profit forecasts, indicating a slowdown in demand for its networking equipment.

The network company attributed the weakness to reduced orders in the first quarter, stating customers are primarily occupied with installing and implementing products.

Cisco shifted towards software offerings like cybersecurity as the company had faced supply chain issues and a decrease in demand post-pandemic. In 2022, Cisco cut around 5% of its global workforce.

The move has arrived at a time when other tech companies have cut jobs to lower costs.

In January, CEO of Google and Alphabet, Sundar Pichai, warned staff more job cuts will come in addition to recent layoffs. In a staff memo, Pichai stated certain roles may be affected as company divisions undergo ongoing changes.

Earlier that month, Google cut 1,000 jobs across its hardware, voice-assistance, and engineering teams to invest in the company’s biggest priorities and future opportunities.

Initially, Google said it was removing a few hundred positions across its engineering, hardware, and the Assistant teams. However, most of the layoff impact was experienced by Google’s augmented reality hardware division.

In the same month, Amazon said it will lay off hundreds of its employees from its Prime Video and studio units with plans to cut 500 employees from its live-streaming platform, Twitch.

This move followed Amazon’s earlier rounds of layoffs. In March, the company announced 9,000 job cuts on top of the 18,000 employees laid off in January 2023.

In March, Meta, the parent company of Facebook, Instagram, and WhatsApp, cut more than 20,000 jobs.

In 2022, Twitter employees prepared themselves for substantial layoffs. Around 2,000 staff, or 25% of the workforce, were expected to be dismissed as part of an extensive overhaul.

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Written by Tue 13 Feb 2024

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