About five per cent of the workforce at Cisco may have to leave as the Company is looking at ‘rebalancing’ and ‘rightsizing’ some of its businesses.
Media reports suggest that about 4,000 employees may be rendered jobless in its presently 83,000-strong global workforce.
The Company denies that this is a cost-cutting exercise and prefers to refer to this as ‘rebalancing’.
Cisco seeks to focus and invest more on cloud-delivered products. In fact, the Company claims to have generated new openings in the new areas of focus.
Details of the layoffs are yet to be made public.
According to the first quarter earnings report (Q1 2023) of Cisco, the Company made $13.6 billion in revenue, which is about six per cent more than what it made during the same period last year, that is, year-on-year.
This was made possible by taking care of supply chain hitches and investing in cloud offerings, in addition to targeted price increments. These steps have helped the Company improve its business and attract customers at a time when organisations are grappling with the repercussions of an economic downturn.
The networking equipment company also raised its revenue and profit outlook for the year a little.
The Company reportedly announced $600 million in severance and other expenses incurred during the new restructuring.