The American network equipment developer Cisco Systems could lay off several thousand employees as part of its restructuring. If we make analogies with 2022, when 5% of the company’s staff were laid off, we can talk about 4-5 thousand people.
Information about the upcoming layoffs was provided to Reuters by anonymous sources close to the company. The exact figures have not yet been announced, but it is known that Cisco’s official address is scheduled for February 14, the day on which the annual reports are published.
The new wave of layoffs is associated with the company’s ongoing restructuring, which notes a drop in demand for network equipment and adjusts downward revenue forecasts for the current year.
The previous decision to reduce staff was made in November 2022: then, after shedding 5% of the workforce, the company paid employees more than $600 million in severance pay.
Cisco currently employs just under 85 thousand people.
The drop in demand for the developer’s products is evident not only in the latest layoffs, but also in the company’s transactions. For example, Cisco bought the cybersecurity company Splunk in 2023 for a record amount in its history of $28 billion, seeing greater potential for itself in this direction.
Recall that Cisco was one of the first to leave the Russian Federation in 2022, and not only suspended its activities, but also disposed of equipment for which it was not possible to renew the license and whose re-export was prevented by the authorities.
Author:
Ekaterina Alipova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
