Network equipment giant Cisco is reportedly planning a company-wide restructuring that could affect thousands of employees. Accordinb to an exclusive report in news agency Reuters, the company is still deciding on the total number of employees to be affected by the layoffs. This move comes is said to have come as the company aims to streamline operations and focus on high-growth areas, according to sources familiar with the matter.
Potential impact
As many as several thousand employees could be laid off, though the exact number remains unclear. Cisco currently has about 84,900 employees globally, according to its website.
Timing of layoffs
An official announcement could come as early as next week, ahead of the company's earnings call on February 14.
Reason for restructuring
This follows a similar move in November 2022, where Cisco laid off 5% of its workforce as part of a cost-cutting effort. The current plan aims to further prioritize high-growth areas.
Cisco's performance
The company recently lowered its full-year revenue and profit forecasts due to a slowdown in demand for its networking equipment. Factors like supply chain issues and post-pandemic market shifts are partly to blame.
Job cuts impact
With this restructuring, Cisco is expected to double down on software offerings like cybersecurity, which are seen as having better growth potential.
Not the only one
Cisco isn't alone – several other tech companies, including Amazon, Alphabet, and Microsoft, have implemented layoffs recently, and telecom giants Nokia and Ericsson also made significant cuts last year.
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