With macroeconomic pressure mounting and the coronavirus scare also affecting sales, Cisco Systems is set to slash jobs in yet another round of layoffs. The American multinational technology conglomerate had earlier laid off about 480 employees at its San Jose and Milpitas offices, in California in August last year. In 2018 also, the Company had slashed 460 jobs, but mostly in the customer experience business.
The move to downsize is part of the Company’s ongoing attempts to align its investments and resources to fulfil the changing needs of customers and stakeholders. Cisco’s stock fell by over three per cent last week, to $38.80 per share.
The Company, which has about 75,000 employees worldwide, now plans to focus on transformation that will drive innovation and ensure long-term profitability of the business. However, Cisco has also promised its total support to the employees who will be impacted by the job cuts.
It is reported that many companies in the US are already suffering the impact of the coronavirus outbreak. Stocks of many big companies, such as Apple, Microsoft and Dell, in the technology space have fallen.
Cisco’s revenue is expected to fall by anywhere between 1.5 and 3.5 per cent in the current quarter. It experienced a four per cent decline in revenue in February as compared to the same period last year. The Company’s revenue in China dropped by about 30 per cent in Q2 2020. These are all early signs of macro effect, according to the Cisco.