The US-based communication technology firm Cisco reportedly intends to trim its workforce to concentrate on areas of growth following the recent trend of job reductions by pears. The company is gearing up for a business restructuring that will result in the termination of thousands of employees, reported the news agency Reuters.
Cisco has not disclosed the precise number of employees who will be impacted by these layoffs. However, a source familiar with the matter revealed to Reuters that the company is still deliberating on the figures, and the final announcement is anticipated as early as this week, coinciding with the company’s earnings call scheduled for February 14th.
In the fiscal year 2022-23, Cisco had a global workforce comprising 84,900 employees. This figure is anticipated to decrease substantially as a result of the impending job cuts. The company had previously disclosed plans for a workforce reduction of around 5 per cent during an earnings call in November 2022, which incurred $ 600 million in severance and other expenses.
The company has reportedly experienced a decrease in demand for its products. During its previous earnings call, the networking equipment maker revised down its full-year revenue and profit forecasts accordingly. The company attributed this weakness to a slowdown in orders during the first quarter, noting that “customers are currently focused on installing and implementing products in their environments.”
However, Cisco is not the only company facing these challenges. The technology sector, which has been among the most resilient and innovative industries over the past decade, has been grappling with the harsh reality of layoffs and uncertainty since the end of 2022. Numerous companies have opted to reduce their workforce and lay off thousands of employees worldwide in an effort to streamline costs and prioritise profitability. Despite the challenges of 2022 and 2023, the trend of layoffs has yet to abate.