Following the recent layoffs, the atmosphere within Cisco has reportedly grown increasingly tense. Employees are expressing frustration over the uncertainty and the impact of two significant layoffs within the same calendar year. Some employees have also voiced their dissatisfaction, criticising the company’s focus on layoffs rather than innovation and revenue growth.
Cisco has initiated a second round of layoffs for the year, with employees expected to learn their fate by mid-September. This move comes after Cisco previously cut around 4,000 positions in February.
Although the company has informed its workforce of the impending job cuts, specific details about who will be affected will not be disclosed until September 16, as reported by TechCrunch. In a recent filing with the SEC, Cisco confirmed that it will reduce its workforce by 7 per cent. Earlier in February, Cisco laid off about 4,000 employees.
Cisco, which had around 84,900 employees as of July 2023, has been facing reduced demand and supply- chain issues in its core business of routers and switches. In response, the company is diversifying, including a $28 billion acquisition of cybersecurity firm Splunk, in March, to boost its subscription services.
Despite these challenges, Cisco’s CEO, Chuck Robbins, highlighted a strong finish to fiscal 2024. According to company filings, Robbins received $31.8 million in executive compensation for 2023.
During a Bloomberg interview, the company’s spokesperson also confirmed that the layoffs are not driven by a need to boost profitability. Instead, they are part of a broader strategic realignment aimed at strengthening Cisco’s focus on cybersecurity, cloud systems, and artificial intelligence (AI) products. This shift involves reallocating resources to these high-growth areas.
The layoffs also coincide with Cisco’s recent acquisition of Splunk, which the company is now working to integrate into its product offerings.
