Cisco Layoffs: Tech giant Cisco recently announced a second round of layoffs for this year. Employees will reportedly only know if they will be impacted or not nearly a month from now. Although employees have been notified about the upcoming job cuts, Cisco has stated that it will not disclose which workers will be affected until September 16, according to a TechCrunch report citing several company sources.
Reuters earlier reported that Cisco plans to proceed with additional layoffs after cutting approximately 4,000 positions in February. In a filing with the SEC, Cisco confirmed last week that it will be reducing its workforce by 7 per cent.
“This has become the most toxic environment I’ve ever worked in, and the mood, as evidenced by comments on internal platforms, is as dark as I’ve ever seen it. I’m only waiting until my next big [Restricted Stock Unit] vest to leave, and I know others are too. Two layoffs of this magnitude in the same calendar year is beyond the pale,” a Cisco employee told TechCrunch.
Another employee criticised Cisco in the report, stating that the company “needs to stop layoffs every year and work on innovation and getting more revenue.”
The company’s CEO, Chuck Robbins, stated that Cisco achieved a “strong finish to fiscal 2024.” According to the company’s filings, Robbins earned $31.8 million in executive compensation for 2023.
In an interview with Bloomberg, Cisco’s Chief Financial Officer, Scott Herren, explained that the recent job cuts are not intended to enhance profitability. Instead, they are part of a strategic realignment, with Cisco focusing more on expanding its cybersecurity, cloud systems, and artificial intelligence (AI) product offerings. This strategic shift requires reallocating resources to these high-growth areas.
The layoffs also follow Cisco’s acquisition of Splunk Inc., which the company is now integrating into its existing product lineup.
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