Cisco’s present global workforce of over 84,000 employees, will soon shrink. As part of a restructuring exercise, the company is preparing to lay off thousands. This is also an indication that it is looking to concentrate on areas of high growth, such as cybersecurity. However, the exact number of people who will be let go is yet to be officially announced.
It is expected that the figure will be made public post the earnings call later this week. The company reportedly feels that its revenues were below expectations because of a decrease in orders.
After eliminating 4000 roles in 2022, the US-based tech infrastructure firm had announced plans to cut more jobs in Silicon Valley, in September 2023, in an attempt to restructure.
The company had said then that with heightened competition, particularly in cloud-based networking companies, it wished to pivot its attention towards software and services while moving away from hardware.
At the time, Cisco had stated that it would provide severance packages to all the departing employees, and also assist them in securing new employment opportunities using outplacement services. It had clarified that the layoffs had nothing to do with cost cutting, as the company’s financial health was quite robust. The primary goal of this rebalancing The company had revealed its intention then to allocate resources strategically toward the company’s transformation, enabling better fulfilment of customer expectations in the evolving technology landscape.
