Cisco has confirmed major job cuts as the networking giant continues to address recent struggles and rising costs.
The company has revealed 7% of its global workforce will be cut, equivalent to thousands of jobs, after sales and revenue fell once again.
In its Q4 2024 results, Cisco revealed revenues of $13.6 billion, a decrease of 10% year on year, with total revenue for the whole 2024 financial year reaching $53.8 billion - a decrease of 6% year on year.
Cisco job cuts
"Cisco is laser focused on growth, consistent execution, and resetting our cost structure as we invest in AI, cloud, and cybersecurity," a Cisco spokesperson told TechRadar Pro.
"To focus on these key priority areas, on August 14, 2024, we announced a restructuring plan to allow us to invest in key growth opportunities and drive more efficiency in our business. This restructuring is expected to impact approximately 7% of our global workforce. The care of our people is a top priority, and we will provide full support to our employees throughout this process.”
The news, which confirms reports from just a few days ago, is the second round of major layoffs at Cisco in 2024 as the company aims to improve efficiency and productivity.
In February 2024, it laid off 5% of its global workforce - which at the time was equivalent to around 4,250 jobs, and also cut 4,100 workers in November 2022.
Cisco has also spent big on acquisitions in recent months, finalizing its purchase of data analytics experts Splunk in March 2024 for around $28bn, so the jobs cuts could well be an after-effect of cutting costs due to this deal.
Other major players in the technology sector, including Amazon, Google, and Microsoft have all carried out similar job cuts recently as a direct result of troubling economic conditions and other related factors.
Most recently, Dell revealed plans to cut around 10% of its workforce as part of plans to "streamline layers of management". Intel also announced its plan to cut 15,000 roles as it aims to turn around what has been a challenging year so far.
Tracking website layoffs.fyi claims over 130,000 roles have been cut in 2024 so far, with more doubtless to come in the near future.
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