Job cuts in the technology sector continue to rise. According to leaked information, Cisco is including layoffs in its restructuring plan. Here are the details…
Cisco joins the layoff frenzy
The increased workforce demand in the technology sector during the pandemic has significantly decreased due to the waning impact of the coronavirus. Over the past two years, technology companies have been laying off tens of thousands of employees due to rising costs.
According to leaked information, the company is planning to restructure in a way that includes laying off thousands of employees, aiming to focus on rapidly growing areas. According to official data, the California-based company had a total of 84,900 employees as of the 2023 fiscal year.
In November 2022, Cisco announced a restructuring that affected about 5% of its workforce during an earnings call, leading to $600 million in severance pay and other expenses. It is estimated that the company will lay off approximately 10,000 people this year. However, it is expected that the layoffs will be announced before the financial statement on February 14th.
The layoffs coincide with a period when many companies, including telecommunications manufacturers Nokia and Ericsson, laid off thousands of people last year to reduce costs. It’s worth noting that technology giants like Amazon, Alphabet, and Microsoft have also been in the news for layoffs in the early months of 2024.
Cisco attributed the slowdown in orders in the first quarter as the reason for this situation, stating, “Our customers are currently focused on deploying and implementing products in their own environments. Therefore, we are facing a slowdown in demand.”
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