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Cisco Systems, one of the world’s leading networking and technology companies, has announced its second round of layoffs in 2024, affecting thousands of employees. The cuts, which come amid a broader restructuring strategy, are part of the company’s efforts to streamline operations and adapt to a rapidly changing tech landscape.
While the exact number of employees impacted has not been confirmed, sources suggest the layoffs could total in the low thousands, marking a significant reduction in Cisco’s workforce. This follows an earlier round of cuts earlier this year, as the company grapples with global economic pressures and shifting demand in the tech industry.
“We understand this is a difficult time for our employees,” said Cisco CEO Chuck Robbins in a statement. He also expressed that it is never easy to make such decisions but at the same time they are required to position Cisco for long-term-success as the company contiunues to evolve.
Cisco’s restructuring appears to focus on reallocating resources towards high-growth areas, including cloud services, cybersecurity, and artificial intelligence. The company is facing increasing competition in these sectors from rivals such as Microsoft, Amazon Web Services, and Google Cloud, driving a need for operational efficiency and innovation.
Industry analysts view the layoffs as part of a broader trend in the tech industry, where large companies are being forced to re-evaluate their workforces in response to economic uncertainty and changing market demands. Despite the layoffs, Cisco remains one of the largest players in the networking and hardware sector, with revenues exceeding $50 billion in 2023.
The announcement comes as Cisco prepares for its upcoming earnings report, where investors will be closely watching for indications of how the restructuring may impact the company’s financial outlook for the rest of the year.