Cisco to chop 1000’s of jobs because it seeks to concentrate on high-growth areas: Reuters

Community large Cisco plans to restructure its enterprise, together with shedding 1000’s of workers, because it seeks to concentrate on high-growth areas, in keeping with three sources aware of the matter.

The San Jose, California-based firm has a complete worker depend of 84,900 as of fiscal 2023, in keeping with its web site.

The corporate remains to be deciding on the whole variety of workers to be affected by the layoffs, one individual stated.

An announcement might come as early as subsequent week, as the corporate prepares for its earnings name on Feb. 14.

In November 2022, Cisco introduced throughout an earnings name a restructuring that impacted roughly 5% of its workforce which led to $600 million in severance and different fees.

Cisco declined to remark.

The transfer would come at a time when tech firms, together with telecom makers Nokia and Ericsson, lower 1000’s of jobs final 12 months in a bid to decrease prices.

Massive tech corporations reminiscent of Amazon, Alphabet and Microsoft have lately implemented layoffs.

Cisco had lower its full-year income and revenue forecasts in its earlier earnings name, indicating that demand for its networking tools was slowing.

It blamed the weak spot on a slowdown in orders within the first quarter, saying, “Customers are currently focused on installing and implementing products in their environments.”

The corporate has in recent times grappled with provide chain points and a post-pandemic slowdown in demand, which has hastened its push into software program choices like cybersecurity.