San Francisco, CA: Cisco Systems, a leading player in internet networking, is laying off over 4,000 employees. This move reflects a growing trend among technology companies, which has resulted in increased profits and stock prices. However, it also serves as a reminder of the job insecurity prevalent in an industry that is rapidly adopting artificial intelligence.
Cisco’s recent quarterly results have led to a significant reduction in their global workforce, with approximately 5% of employees being affected by mass layoffs. Following Cisco’s recent round of layoffs that resulted in 5,000 job cuts, the company is now preparing for its anticipated acquisition of Splunk for $28 billion, which is expected to be finalized by April 30.
Cisco, a renowned technology company specializing in internet connectivity, anticipates incurring an extra $800 million in expenses due to its reorganization. Two major rounds of layoffs in the span of two years have had a significant impact on other well-known technology companies, including Google and Amazon. Both companies have made multiple reductions to their previously expanding workforces since the conclusion of 2022.
The reductions are being made despite the fact that the majority of the companies are still highly profitable. Cisco, headquartered in San Jose, reported a decrease in earnings for its fiscal second quarter covering October-January. The company earned $2.6 billion, or 65 cents per share, which is 5% lower compared to the same period last year. Revenue for the period decreased by 6% compared to the previous year, amounting to $12.8 billion.
Cisco anticipates a decrease in demand for its products and software services in the coming months as customers exercise caution due to an uncertain economic outlook, according to CEO Chuck Robbins during a conference call with analysts.