Cisco Systems to Implement Second Round of Layoffs in 2023

Cisco stock dips on report it will make more job cuts this week By Investing.com

Cisco Systems (NASDAQ:CSCO) shares fell by over 1% Friday following a report from Reuters that the company plans to implement another round of layoffs in the next week. According to Reuters, the U.S. networking equipment giant is preparing to cut thousands of jobs in what will be its second major layoff this year. The upcoming layoffs are expected to affect a similar number of employees as the 4,000 job cuts announced in February, and they could even surpass that figure, the publication stated. The announcement is likely to coincide with the company's fourth-quarter results, which are expected to be released as early as Wednesday, Reuters said, citing sources familiar with the matter. This decision follows Cisco's ongoing efforts to shift its focus to higher-growth areas, including cybersecurity and artificial intelligence. The company, which is based in San Jose, California, has been grappling with sluggish demand and supply-chain constraints in its core business of routers and switches, Reuters noted. These challenges have pushed Cisco to diversify its portfolio, including the $28 billion acquisition of cybersecurity firm Splunk in March, which aims to boost its subscription business and reduce reliance on one-time equipment sales. Cisco employed around 84,900 people as of July 2023, but this figure does not reportedly reflect the job cuts from February. The planned job cuts at Cisco are part of a broader trend in the tech industry, where companies have been trimming their workforces to offset significant investments in AI. Citing data from Layoffs.fyi, Reuters added that more than 126,000 employees have been laid off across 393 tech companies since the start of the year.

Cisco to cut 'thousands' more in second round of layoffs this year: report (CSCO)

Cisco Systems (NASDAQ:CSCO) is set to let go "thousands" of employees later this year in what would mark the networking giant's second round of employee cutbacks this year, Reuters reported. The number of people impacted by the layoffs could be similar or "slightly higher" than the 4,000 employees, or roughly 5% of the company's workforce, that were let go in February, the news outlet added, citing people familiar with the matter. The cuts could be announced in conjunction with Cisco's fiscal fourth-quarter results, which are slated to be released after the close of trading on Wednesday. A consensus of analysts expect Cisco to earn $0.85 per share on $13.54B in revenue for the quarter. Cisco did not immediately respond to a request for comment from Seeking Alpha. Shares of the San Jose, Calif-based Cisco were down 0.7% in early trading on Friday. More on Cisco Cisco Systems: Evaluating Its Position In The AI And Cloud Revolution Cisco: The Valuation Case Is Strong; AI And Splunk Help Cisco: From Market Leader To Struggling Competitor Cisco snaps six straight sessions of gains Check Point surges on Q2 results, other cybersecurity stocks trend down

Trending : Cisco Systems Plans to Announce Layoffs, Report Says

14:03 -- Cisco Systems is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The company is planning to cut thousands of workers as it shifts its focus to cybersecurity and artificial intelligence, Reuters reported Friday, citing people familiar with the matter. Earlier this year, Cisco said it was planning to cut 5% of its workforce amid restructuring efforts. Dow Jones & Co. owns Factiva. ([email protected])