Cisco is planning The restructuring will include laying off thousands of employees to focus on high-growth areas, three people familiar with the matter said.
According to the company's website, the San Jose, California-based company has 84,900 employees as of fiscal 2023.
The company is still determining the total number of employees affected by the layoffs, one of the people said. The company is preparing to report its financial results on February 14th, so it could be announced as early as next week.
In November 2022, Cisco announced on its earnings call a restructuring that would affect approximately 5% of its workforce and result in $600 million in severance and other costs.
Cisco declined to comment.
The move comes at a time when tech companies including telecommunications makers Nokia and Ericsson cut thousands of jobs last year to cut costs.
Several major tech companies, including Amazon, Google and Microsoft, have cut jobs in recent weeks.
Become slow
In its previous earnings release, Cisco lowered its full-year sales and profit forecasts, citing slowing demand for network equipment.
The company attributed the downturn to a slowdown in orders in the first quarter, saying, “Customers are now focused on installing and implementing products in their environments.”
Read: Cisco agrees to buy Splunk for $28 billion in cash
The company has been grappling with supply chain issues and weak demand in the wake of the pandemic in recent years, speeding up efforts on software products such as cybersecurity. — Utkarsh Shetty and Supantha Mukherjee, (c) 2024 Reuters
