Cisco, one of the leading technology companies, is reportedly planning to lay off thousands of employees as part of its restructuring efforts and Cisco layoffs 2024.
Cisco’s layoff move is said to be in response to the decreasing demand for the company’s products and services, especially in the telecom sector. Here are all the details…
Cisco layoffs 2024: Everything you need to know
According to a report by Reuters, Cisco management continues to determine which employees the layoffs will affect. It is unclear how the layoffs will affect Cisco’s business in the telecom sector. Still, the company appears to be affected by declining network operator spending, as are other equipment suppliers such as Nokia and Ericsson.
This is not the first round of cuts at Cisco. In 2022, the company laid off 4,000 employees, cutting about 5% of its workforce. At last count, Cisco had about 85,000 employees.
Cisco has been focusing on artificial intelligence in recent months. The company expects to generate about $1 billion in annual orders from AI and recently announced a new partnership with Nvidia, which supplies many of the chips that run the AI operations of companies like Microsoft and Amazon.
Cisco’s news of layoffs and restructuring comes at a time when other companies in the industry are also cutting staff. AT&T, T-Mobile, and Verizon laid off about 8% of their workforce last year, according to the latest figures.
Cisco is scheduled to report its quarterly earnings later this week, and the layoffs are likely to be announced then. Expectations of a 6% decline in the company’s sales caused investors to flee in the last quarter, even though net income rose 36% year-on-year to $3.6 billion on 8% sales growth.
The layoffs and restructuring at Cisco are signs of the challenges facing the technology industry, especially the telecom sector. As network operators’ spending declines, companies are forced to find new ways to adapt and remain competitive. Cisco’s focus on artificial intelligence is one example of this, as the company seeks to diversify its offerings and find new sources of revenue.
For those affected by layoffs, it is important to remember that there are resources available to help. Many companies offer severance packages and placement services to help employees transition into new roles. Many organizations also provide support and resources for individuals affected by layoffs.
In conclusion, Cisco’s news of layoffs and restructuring is a reminder of the challenges facing the technology sector. However, it is also a sign of the company’s willingness to adapt and find new ways to remain competitive in a rapidly changing market. As Cisco continues to shift its focus to AI, it will be interesting to see how the company evolves and grows in the coming months and years.
Featured image credit: OlgaGubskaya / Unsplash