RNS: In a strategic restructuring move, IT giant Cisco revealed its decision to lay off 5% of its global workforce on Wednesday.
The company’s decision comes as part of broader restructuring effort aimed at enhancing operational efficiency and aligning resources with future growth opportunities.
Cisco’s latest move to reduce its workforce follows a series of similar announcements from other technology firms in recent months.
The company reported a strong second-quarter performance, with revenue reaching $12.8 billion. Net income on a generally accepted accounting principles (GAAP) basis stood at $2.6 billion, translating to $0.65 per share. Meanwhile, non-GAAP net income amounted to $3.5 billion, or $0.87 per share.
Chuck Robbins, Chair and CEO of Cisco, commented on the company’s performance, stating, “We delivered a solid second quarter with strong operating leverage and capital returns. We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”
With a workforce of nearly 85,000 employees, the reported layoff is expected to impact around 4,000 employees. Cisco’s restructuring efforts reflect its commitment to adapting to evolving market dynamics and maintaining its competitive edge in the technology sector.
The announcement adds Cisco to the list of tech firms, including Amazon, Microsoft, and PayPal, that have implemented workforce reductions in 2024. According to data compiled by Layoffs.fyi, a total of 144 tech companies have laid off 34,560 employees so far this year.
