Cisco announced plans to lay off significant number of employees
On Wednesday, computer networking giant Cisco announced a significant restructuring plan that involves cutting thousands of jobs. Approximately 5 percent of Cisco’s global workforce will be impacted by these layoffs, according to the Silicon Valley-based company’s latest quarterly earnings report. At the end of last year, Cisco employed nearly 85,000 individuals.
This move comes amid industry speculation that tech layoffs could become more common in Silicon Valley as companies increasingly pivot towards artificial intelligence. While these layoffs are substantial, they do not match the scale of those seen in late 2022 and early 2023, when tech firms shed hundreds of thousands of jobs in response to the hiring surge during the pandemic.
In late 2023, Cisco made its largest-ever acquisition by agreeing to purchase cybersecurity company Splunk in a $28 billion deal. This acquisition underscores the growing significance of cybersecurity in the tech sector and positions Cisco, traditionally known for its routers and network equipment, as a major player alongside competitors such as Palo Alto Networks, Check Point, CrowdStrike, and Microsoft.
Despite these strategic moves, Cisco reported a 6 percent decline in revenue, totaling $12.8 billion, for the fiscal quarter ending in late January compared to the same period the previous year. Similarly, the company’s profit decreased by about 5 percent to $2.6 billion.
Cisco’s chief executive, Chuck Robbins, emphasized the company’s commitment to investing in future growth opportunities, particularly in innovation geared towards an increasingly connected ecosystem and the adoption of AI for organizational security. However, following the release of the earnings report, Cisco’s shares experienced a more than 5 percent decline in after-market trading, closing at $47.65.
Business News: Cisco announced plans to lay off significant number of employees
