After eliminating 4000 roles in 2022, the US-based tech infrastructure firm, Cisco Systems is planning to cut more jobs in Silicon Valley. As a part of another round of layoffs, the company may let go of another 350 workers.
The job cuts will affect many job roles at the company including engineers, managers and support personnel.
As revealed by a recent submission to the California Employment Development Department, Cisco has planned to cut 227 job roles in San Jose and an additional 123 roles in the neighbouring city of Milpitas, California. The staff reduction will take place on 16 October, 2023.
The upcoming job cuts are said to be a part of a restructuring exercise aimed at streamlining its operations. With heightened competition, particularly in cloud-based networking companies, the company now wishes to pivot its attention towards software and services while moving away from hardware.
The company has stated that it will provide severance packages to all the departing employees. Additionally, it will assist them in securing new employment opportunities using outplacement services.
The company had already let go of 673 employees at its offices in Milpitas, San Francisco, and San Jose. At the time, the company had clarified that the layoffs had nothing to do with cost cutting, as the company’s financial health was quite robust. In its August earnings report, Cisco Systems disclosed a revenue of $12.6 billion for the fiscal year ending on 29 July, marking a 7 per cent increase compared to the previous year.
This round of layoffs is also not driven by cost-cutting measures, as the overall employee count remains largely unchanged from when the process began. The primary goal of this rebalancing is to allocate resources strategically toward the company’s transformation, enabling better fulfilment of customer expectations in the evolving technology landscape.