Cisco Announces Mass Layoffs Amid Uncertain Economic Outlook

Cisco

Thursday, February 15, 2024 5:32 AM UTC

Moreover, with these job cuts, Cisco Systems has joined several major tech companies that have also recently laid off or announced job terminations. The cuts are almost becoming a trend in the industry as businesses aim to boost their revenues through upgrades and trimming down costs, which unfortunately includes workforce reduction.

Layoffs and Acquisitions at Cisco

As per Associated Press News, during its latest quarterly results report, Cisco confirmed its massive layoffs on Wednesday, Feb. 14. The company said the cuts represent around five percent of its total workforce worldwide, which has already reached 84,900.

The new layoffs followed the company’s cutbacks in the last quarter of 2022. At that time, it had let go of 5,000 employees workers. This also occurred before Cisco acquired Splunk, a San Francisco-based software firm with a deal valuation of $28 billion. The buyout of Splunk is expected to be completed by Apr. 30 this year.

Slow Demand Prediction

Cisco is seeing a slowdown in demand for its software services and products in the next three to six months, and this could have contributed to the decision for the latest employee reductions.

The company’s chief executive officer, Chuck Robbins, also said they are wary of the economic uncertainties that will impact Cisco’s future.

Despite this, Cisco is reorganizing its corporate system and focusing on divisions that have more potential for driving growth. Likewise, CNN Business reported that the hardware and software developer plans to shift its focus to key priority areas like artificial intelligence (AI).

“We continue to align our investments to future growth opportunities,” Robbins said. “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.”

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