Insider Insights: Cisco Layoffs 2024

Insider Insights: Cisco Layoffs 2024

Cisco unveiled a restructuring plan that includes layoffs. Approximately 144 IT companies have declared layoffs. Cisco posted a second-quarter revenue of $12.8 billion. Chuck Robbins, Cisco's chairman and CEO, underlined the need of restructuring.

The elimination of staff follows Cisco's late-2022 layoffs of 5,000 employees and comes ahead of its $28 billion acquisition of Splunk, which management now intends to complete by April 30. Cisco, a firm best recognized for developing much of the equipment that connects the internet, estimates its reorganization to cost an additional $800 million.

The cuts are being imposed despite the fact that the majority of the enterprises are still profitable. Cisco, situated in San Jose, California, earned $2.6 billion, or 65 cents per share, in its fiscal second quarter from October to January, a 5% reduction from the same period the previous year. Revenue declined 6% from the previous year to $12.8 billion.

The actual number of layoffs is unknown, although it might be several thousand employees. With this restructure, Cisco is likely to focus on software offerings with higher growth potential, such as cybersecurity. Some of the media houses say the initial number is like "Cisco plans to slash more than 4,250 workers as growth slows" but it may increase as to cover up the costs of acquisitions.

Cisco, like its rivals, is increasing its attention on areas of technology most likely to produce future growth a shift that has caused a number of tech businesses to eliminate positions in some departments while creating more jobs in the still-nascent field of artificial intelligence, or AI, which is becoming knowledgeable enough to begin tackling tasks that once needed human intelligence.

Source : CNBC News on Cisco Layoffs