Cisco reportedly plans to cut thousands of employees to focus on high-growth areas
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It has been reported that Cisco Systems , a major network equipment manufacturer, may undergo a business restructuring that will involve laying off several thousand employees as early as February 2024. Cisco Systems is working to strengthen its high-growth areas, and this personnel reduction is expected to further focus on high-growth areas.
Exclusive: Cisco to cut thousands of jobs as it seeks to focus on high growth areas | Reuters
https://www.reuters.com/business/cisco-cut-thousands-jobs-it-seeks-focus-high-growth-areas-sources-2024-02-09/
Cisco reportedly plans to lay off thousands following lower product orders - SiliconANGLE
Cisco Job Cuts To Total 'Thousands' As Tech Giant Focuses on 'High-Growth' Areas: Report
https://www.crn.com/news/networking/2024/cisco-job-cuts-to-total-thousands-as-tech-giant-focuses-on-high-growth-areas-report
Cisco Systems has seen its network equipment orders decline by about 20% year-over-year in the third quarter of 2023 due to a decline in demand from cloud providers and other large customers. According to Cisco Systems, these customers have not yet made progress in deploying network equipment purchased in early 2023, which has resulted in a decline in orders. Cisco Systems speculates that 'customers are now focused on installing and implementing products in their own environments.'
Cisco Systems has lowered its full-year 2023 revenue and net income outlook due to weaker demand for network equipment.
Meanwhile, Cisco Systems is experiencing growth in its security, networking and observability divisions. Cisco Systems CEO Chuck Robbins told investors at a financial results briefing in November 2023 that 'Cisco Systems is committed to strengthening its capabilities in these high-growth areas.' Robbins also
Robbins added, 'Cisco has made significant investments that have resulted in excessive employee growth. We hope that these reductions will return Cisco to a lean, sales-driven organization focused on high-growth areas such as security and networking.'
A sales executive at a Cisco Systems partner speculates that the cuts will be focused on divisions within Cisco Systems that are stagnating in growth.
Cisco Systems has not disclosed the number of employees to be laid off or the teams that will be affected. According to multiple overseas media outlets, the staff reductions may be announced as early as around the earnings briefing to be held on February 14, 2024 local time. Cisco Systems also cut about 5% of its total workforce in November 2022, and this staff reduction is expected to be comparable to that.
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