Exclusive Cisco To Lay Off Thousands More In Second Job Cut This Year

Cisco to Lay Off Thousands of Employees

Second Round of Job Cuts in 2023

Affected by Challenging Economic Conditions

Cisco Systems, a leading manufacturer of computer networking equipment, announced plans to lay off thousands of employees on Wednesday. This marks the company's second round of job cuts in 2023, following layoffs of 4,000 employees in February.

The layoffs are part of a larger restructuring plan aimed at improving efficiency and streamlining operations. Cisco is facing challenges due to slowing sales and rising costs, as well as economic uncertainty.

Financial Impact

The exact number of employees to be affected by the layoffs is not yet known, but it could represent a significant portion of Cisco's workforce. The company employed approximately 83,300 people worldwide as of February 2023.

Cisco expects the restructuring to result in annualized cost savings of $1 billion by the end of fiscal 2025. This includes both cash and non-cash expenses related to severance, real estate, and other costs.

Employee Support

Cisco has stated that it is committed to supporting affected employees during this transition. The company will provide severance packages, outplacement services, and career counseling.

Cisco is also working with impacted employees to identify potential opportunities within the company. It is offering relocation assistance and training programs to help laid-off employees find new roles.

Industry Outlook

Cisco's job cuts reflect the challenges facing the tech industry as a whole. Many technology companies have announced layoffs in recent months as they adjust to a slowing economy and changing market conditions.

Cisco remains a leader in the networking industry, but it is facing intense competition from rivals such as Juniper Networks and Huawei. The company is also diversifying its business into areas such as cloud computing and cybersecurity.

Conclusion

Cisco's decision to lay off thousands of employees is a significant event in the tech industry. It underscores the challenges facing the sector as it grapples with economic uncertainty and changing market dynamics.

Cisco's commitment to supporting affected employees and investing in its business is a positive sign that it believes it can emerge from this restructuring stronger and more competitive.