Network giant Cisco is reportedly gearing up for a significant restructuring of the company, which could include thousands of layoffs, in a strategic move to align itself with sectors that account for better growth.
The news comes from an exclusive Reuters report, which cites three unnamed sources familiar with the matter.
A company earnings call on February 14 could be a deadline for Cisco to make the announcement, which could affect a considerable proportion of its workforce.
Cisco gearing up for major layoffs
According to the company’s website, Cisco had 84,900 workers as of mid-2023, after around 4,100 workers (or 5% of the workforce) had been made redundant late in 2022 amid challenging economic conditions.
The company later said goodbye to another 350 workers in September 2023 (via layoffs.fyi), however the latest reporting suggests that Cisco’s 2024 layoffs could account for the loss of more jobs than its 2023 headcount reduction.
Cisco has played its cards closely and declined to comment, but it’s likely that we may hear news on a decision as early as this week.
Other major players in the technology sector, including Amazon, Google, and Microsoft have all recently executed similar strategies as a direct result of troubling economic conditions and other related factors. Although 2024 tech sector redundancies haven’t reached the same level as 2023, more than 34,000 workers have already been affected during the first six weeks of this year.
News that Cisco could be gunning for another round of layoffs comes amid a forecasted slowdown in demand for its networking equipment. Rivals like Nokia and Ericsson also had to send workers packing last year.
TechRadar Pro has asked Cisco to confirm the speculation and to add any further context, but the company did not immediately respond.