US technology company Cisco has announced that it will be parting ways with more than 4000 employees. The announcement came after its second-quarter earnings report revealed falling revenues.
On February 14th, 2024, Cisco announced a restructuring plan to “realign the organization and enable further investment in key priority areas.”
This restructuring plan will impact approximately five percent of Cisco’s global workforce, according to the second-quarter earnings report. The decision, after what the company describes as a “solid second quarter,” will affect around 4,250 employees.
At the end of the fiscal year 2023, Cisco had approximately 84,900 employees, with 47.6% of them residing in the US.
Cisco reported a quarterly revenue of $12.8 billion, which was six percent down compared to the same period last year. The net income on a generally accepted accounting principles (GAAP) basis was $0.65 per share, a 3% decrease.
“We delivered a solid second quarter with strong operating leverage and capital returns,” said Chuck Robbins, chair and CEO of Cisco. “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.”
Cisco’s share price of $50.28 was more than five percent down in after-hours trading.
Company’s CFO Scott Herren noted that Cisco is making good progress “in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage, and shareholder returns.”
The current round of layoffs is the second two years, as in 2022, Cisco had also reduced the workforce by five percent.
Cisco Systems is an American multinational technology company providing networking, cloud, and cybersecurity solutions and services. Headquartered in San Jose, California, Cisco is one of the largest vendors of networking hardware, telecommunications equipment, and software.
The tech industry continues its trend of shedding dead weight in 2024, laying off tens of thousands of workers in the past month, as Cybernews previously reported. Last year, big tech companies like Amazon, Google, and Microsoft led the industry squeeze. This year, according to statistics from layoffs.fyi, 144 tech companies have already let go of 34,560 employees.
