Cisco Systems Plans Second Round of Layoffs
Cisco to Cut 5,500 Jobs, 7% of Workforce
Cisco Systems, a networking equipment provider, announced plans to lay off 5,500 employees, approximately 7% of its workforce. This marks the second round of job cuts for the company in 2023, following the layoff of 4,000 employees in February.
Focus on High-Growth Areas
The layoffs are part of Cisco's ongoing restructuring efforts to align its operations with its strategic priorities. The company is shifting its focus to high-growth areas such as cloud computing, security, and artificial intelligence.
Rebounding Demand
Despite the layoffs, Cisco reported rebounding demand for its networking equipment. The company's revenue increased by 7% in the most recent quarter, driven by strong growth in its cloud and security businesses.
Second Round of Layoffs
The latest job cuts come as Cisco faces challenges in the wake of the pandemic. The company has seen a decline in demand for its traditional hardware products, leading to a shift towards software and services.
Layoff Details
- 5,500 employees to be laid off
- Approximately 7% of Cisco's workforce
- Layoffs to be completed by the end of fiscal 2023
Impact on Shareholders
The news of the layoffs sent Cisco's stock price down by 3% in premarket trading. Investors are concerned about the company's ability to navigate the ongoing economic uncertainty.
Sources
Reuters: Cisco to Cut More Than 5,500 Jobs in Restructuring, Second Layoff Round This Year
CNBC: Cisco to lay off 5,500 workers in second round of job cuts this year
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