Cisco to Cut 7% of Workforce in Second Round of Layoffs
By Reuters
August 9, 2023
Cisco Systems Inc. (CSCO), one of the world's largest makers of computer networking equipment, announced on Wednesday that it would lay off approximately 7% of its workforce, or thousands of employees. This marks the second round of job cuts for the company this year, as it continues to adjust its business strategy and shift focus towards higher-growth areas such as cybersecurity and artificial intelligence.
The planned layoffs are part of a broader cost-cutting initiative that Cisco has been pursuing in recent months, as it faces declining demand for its traditional networking products and increasing competition from cloud-based services. In May, the company announced plans to eliminate 5,500 jobs, or about 5% of its workforce, in an effort to streamline its operations and reduce expenses.
Cisco's decision to cut jobs comes amid a challenging economic environment, with rising interest rates, inflation, and geopolitical uncertainty. The technology sector has been particularly hard-hit, with many companies announcing layoffs and cost-cutting measures in recent months. Cisco's competitors, such as Juniper Networks and Arista Networks, have also announced plans to lay off employees.
Analysts say that the job cuts at Cisco are a sign that the company is facing significant challenges and needs to make changes to adapt to the evolving market landscape. Cisco's shares have fallen by more than 30% this year, reflecting investors' concerns about the company's growth prospects and profitability.
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