Introduction:
Cisco Systems has announced a significant workforce reduction, with plans to lay off about 7% of its global employees, translating to roughly 6,000 jobs. This strategic move reflects the company's shift towards prioritizing high-growth sectors such as artificial intelligence and cybersecurity. The decision comes on the heels of a 10% decline in the company's quarterly revenue, signaling a major recalibration of its business focus.
"Company Repositions Amid Revenue Decline and Shifts Focus to Emerging Technologies"
Cisco Systems has revealed plans to reduce its global workforce by approximately 7%, which equates to around 6,000 employees. This move is part of the company's strategy to concentrate on expanding areas such as artificial intelligence and cybersecurity. The decision comes in response to a 10% drop in the company's quarterly revenue.
Cisco Systems, a leading player in the networking industry, has disclosed plans to reduce its global workforce by about 7%, which equates to roughly 6,000 employees. This decision comes as the company pivots towards high-growth sectors such as artificial intelligence and cybersecurity. This latest move represents Cisco's second significant round of job reductions in 2024.
Cisco Systems has announced a reduction of approximately 7% in its global workforce, which could impact around 6,000 employees given its total headcount of 84,900 as of July 2023. This follows a previous round of layoffs affecting 4,000 employees in February. The company’s decision comes in the wake of a 10% drop in quarterly revenue year-over-year, totaling $13.64 billion, though this figure surpasses the anticipated $13.54 billion.
Cisco Systems has announced a major restructuring plan designed to enhance investment in key growth areas and improve operational efficiency. The company expects to incur pre-tax charges of up to $1 billion due to this restructuring, with $700-800 million anticipated in the first quarter of fiscal 2025.
CEO Chuck Robbins is confident about the recovering demand for Cisco’s networking products, stating that the company has resolved its inventory issues and is moving back to a more stable demand environment.
Cisco's strategic shift includes a focus on emerging technologies, with a $1 billion investment in AI startups in June and the recent acquisition of cybersecurity firm Splunk for $28 billion. The restructuring will consolidate Cisco’s networking, security, and collaboration departments into a unified structure. The company forecasts first-quarter revenue to be between $13.65 billion and $13.85 billion, exceeding analyst expectations.
