Cisco Systems to Lay Off Thousands of Employees
Company Announces Second Round of Job Cuts
Cisco Systems, one of the world's largest networking equipment manufacturers, announced on Wednesday that it will lay off approximately 7,000 of its employees, constituting its second round of job cuts this year.
Reasons for the Layoffs
- Economic headwinds
- Changing market dynamics
- Increased automation and efficiency measures
Impact on the Workforce
The layoffs will affect approximately 5% of Cisco's global workforce of approximately 140,000 employees.
Employees in various departments and regions will be impacted, including:
- Sales
- Marketing
- Engineering
- Operations
Previous Layoffs
In February 2023, Cisco laid off approximately 4,000 employees, resulting in a workforce reduction of approximately 3%.
These latest layoffs represent a further continuation of the company's cost-cutting measures and restructuring efforts.
Financial Impact
Cisco expects the layoffs to generate annualized cost savings of approximately $600 million, primarily from reduced employee expenses.
These savings are expected to support the company's ongoing investment in research and development, innovation, and its hybrid work model.
Long-Term Strategy
Cisco remains committed to its long-term strategy of investing in key growth areas such as software, security, and cloud computing.
The company anticipates continued revenue growth in the future, driven by the increasing adoption of digital technologies and the expansion of its product portfolio.
Employee Support
Cisco is providing a range of support services to affected employees, including severance packages, outplacement assistance, and mental health resources.
The company is committed to minimizing the impact of the layoffs and supporting its employees during this transition.
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