San Jose, February 10, 2024, The Europe Today: Network giant Cisco is reportedly gearing up for a business restructuring, which may involve laying off a significant number of employees, as part of its strategic shift toward high-growth areas. Three sources familiar with the matter have disclosed that the San Jose-based company, with a current workforce of 84,900 employees as of fiscal 2023, is considering this move to streamline its operations and reallocate resources.
The total number of employees affected by the potential layoffs is yet to be finalized, with Cisco still in the decision-making process. An official announcement regarding the restructuring and potential job cuts is anticipated to be made as early as next week, coinciding with the company’s earnings call scheduled for February 14.
In a similar move in November 2022, Cisco had announced a restructuring during an earnings call, impacting around 5% of its workforce. This previous restructuring effort resulted in $600 million in severance and other charges.
As tech companies navigate a rapidly changing business landscape, several have undertaken restructuring initiatives and workforce reductions to optimize costs and align their operations with evolving market demands. Last year saw notable job cuts in the technology sector, with companies like telecom manufacturers Nokia and Ericsson implementing workforce reductions.
Cisco’s decision to refocus on high-growth areas aligns with broader industry trends, where companies are adapting to the dynamic nature of technology markets and positioning themselves strategically for future opportunities.
When approached for comment, Cisco declined to provide specific details on the potential restructuring and employee layoffs.