Cisco to lay off more than 4,000 employees, here's what the company has to say

Joining the ever-growing list of

tech companies

that are laying off

employees

in Cisco. During its

quarterly earnings call

, the US-based tech company revealed that it will lay off thousands of employees. “On February 14, 2024,

Cisco

announced a restructuring plan in order to realign the organisation and enable further investment in key priority areas. This restructuring plan will impact approximately 5 percent of Cisco's global workforce,” the company said in a statement.
It is expected that close to 4,200 employees will lose their jobs as part of the restructuring exercise. The company hasn’t given any timeline on when the

layoffs

will take place but it is expected to happen in the current quarter.
The layoffs raise concerns about job security in the

tech industry

, especially amidst ongoing economic fluctuations. According to multiple reports, as many as 144 tech companies have announced layoffs since January 2024. Google, Amazon, Microsoft, SAP all have laid off employees. Close to 35,000 jobs have been cut since the turn of the year.
Meanwhile, Cisco reported second quarter results for the period ended January 27, 2024, where it announced second quarter revenue of $12.8 billion.

“We delivered a solid second quarter with strong operating leverage and capital returns,” said Chuck Robbins, chair and CEO of Cisco. “We continue to align our investments to future growth opportunities. Our innovation sits at the centre of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organisations.”
“Focused execution and operating discipline drove our solid top and bottom-line results and strong margins in Q2,” said Scott Herren, CFO of Cisco. “We are making good progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns, as evidenced by our increased dividend.”