Cisco Joins Tech Layoffs 2024 Trend, Plans To Cut Thousands of Jobs
Cisco, a big American tech networking company, is planning to let go of thousands of its workers as part of its business restructuring. This decision comes at a time when many other tech companies are also reducing their staff.
The networking company, Cisco, with nearly 85,000 employees, is focusing on areas that are expected to grow. The exact number of jobs to be cut is still not clear, but an announcement might come around February 14, during Cisco’s earnings call.
Last year, they already cut about 5% of their staff, costing them $600 million in severance and other expenses.
This trend of tech layoffs in the tech industry is not new. In January 2024 alone, over 30,000 jobs were cut by 115 tech companies globally.
For instance, Snap, the social media company, is cutting 10% of its workforce, which is around 500 people.
Google also laid off 1000 employees, and its CEO warned of more cuts this year. Microsoft and eBay have also recently reduced their staff numbers.
These layoffs in tech firms like Cisco, Nokia, Ericsson, Amazon, Alphabet, and Microsoft are mainly to reduce costs.
In Cisco’s latest earnings report, they lowered their revenue and profit forecasts for the year, pointing to a decrease in demand for their networking products.
They mentioned that their customers are currently more focused on using and setting up the products they already have.
Cisco has also been dealing with supply chain issues and a drop in demand after the pandemic. This has pushed them to focus more on software solutions, including cybersecurity, as part of their business strategy.
In 2024, several companies have announced layoffs as part of their restructuring plans. Microsoft is cutting around 1,900 jobs at its gaming divisions Activision Blizzard and Xbox.
IBM also plans to lay off some employees but will hire more for AI-centered roles. E-commerce firm eBay is cutting about 1,000 roles, while videogame software provider Unity Software is cutting about 25% of its workforce or 1,800 jobs.
DocuSign plans to reduce its workforce by about 6%, with the majority of layoffs in its sales and marketing organizations.
Snap is cutting around 528 jobs, or 10% of its global workforce, while Salesforce is laying off about 700 employees, or roughly 1% of its global workforce.
Now the networking company Cisco has also joined the trend and going to restructure its business.