Cisco Systems to Lay Off 7% of Workforce
Company Shifts Focus to High-Growth Areas
Second Round of Layoffs This Year
Cisco Systems plans to lay off approximately 7% of its global workforce, or roughly 4,100 employees, as part of a cost-cutting measure and shift in focus toward high-growth areas.
This marks the second round of layoffs for the tech giant this year, following the elimination of 5,500 positions in January.
Reasons for the Layoffs
- Economic downturn: Cisco CEO Chuck Robbins cited the current economic headwinds as a factor in the decision.
- Focus on profitability: The company aims to improve its profitability by reducing operating expenses.
- Shift in strategic priorities: Cisco is prioritizing investments in high-growth areas such as cloud computing, cybersecurity, and artificial intelligence.
Affected Business Units
The layoffs are expected to primarily impact the following business units:
- Infrastructure Platforms and Solutions
- Applications
- Security and Collaboration
Cisco plans to provide severance packages and outplacement services to affected employees.
Impact on the Tech Industry
Cisco's layoffs are part of a broader trend in the tech industry as companies grapple with economic challenges and shifting consumer demands.
According to a Reuters report, other major tech companies such as Meta, Amazon, and Salesforce have also announced layoffs in recent months.
Conclusion
Cisco's decision to lay off 7% of its workforce highlights the challenges facing the tech industry in the current economic climate.
As the company shifts its focus toward high-growth areas, it remains to be seen how these layoffs will impact its long-term success.
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