Cisco Plans Major Job Cuts
Cisco to Cut Thousands of Jobs in Second Round of Layoffs
Networking equipment maker Cisco Systems (NASDAQ: CSCO) is planning to lay off approximately 7% of its global workforce, or around 4,100 employees, in a second round of cost-cutting measures this year.
Reasons for Job Cuts
- Shifting focus to higher-growth areas, such as software and services.
- Declining demand for hardware products due to the economic downturn.
- Increasing competition from rivals such as Juniper Networks and Arista Networks.
Impact of Layoffs
- The layoffs will affect various departments across the company, including engineering, sales, and marketing.
- Cisco expects to incur restructuring charges of approximately $600 million to $700 million in connection with the layoffs.
- The company aims to reduce its workforce by about 4,100 employees, bringing its total headcount to around 60,000.
Previous Layoffs and Future Plans
Cisco's latest round of job cuts follows an initial round of layoffs in January 2023, which affected 5% of its workforce or around 2,900 employees.
The company had previously announced plans to cut 5% of its workforce by the end of fiscal 2023, totaling about 6,000 employees.
Despite the layoffs, Cisco remains committed to investing in its core business and emerging technologies, such as artificial intelligence and cloud computing.
Sources:
- [Reuters](https://www.reuters.com/business/cisco-cut-thousands-jobs-second-round-layoffs-this-year-sources-2023-08-09/)
- [Cisco Systems Press Release](https://newsroom.cisco.com/press-release-content?articleid=2289885)
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