Cisco Announces Job Cuts, Targets New Markets in Bid for Future

Cisco still needs to confirm the actual number of layoffs that would take place. However, a source from the magazine stated that the corporation is still settling on the statistics. The final announcement might come as early as this week as the company prepares for its earnings call on 14 February. Meanwhile, Cisco had a global workforce of 84,900 people in fiscal 2023. This figure is likely to fall dramatically owing to upcoming employment losses. The corporation disclosed a 5% employment reduction in an earnings call in November 2022, resulting in $600 million in severance and other expenses.

Networking equipment manufacturer reduced its full-year revenue and profit estimates

According to reports, demand for the company's products is declining. As a result, the networking equipment manufacturer reduced its full-year revenue and profit estimates during its most recent earnings call. The business blamed the deficit on decreased orders in the first quarter, stating that "customers are currently focused on installing and implementing products in their environments."

However, Cisco isn't alone. The IT sector, one of the most robust and inventive industries over the last decade, has faced a harsh reality of layoffs and uncertainty since the end of 2022. Many corporations opted to downsize their workforce and lay off thousands of employees worldwide to minimise expenses and focus on earnings. While 2022 and 2023 were hard and uncertain, layoffs have not yet ended

Another round of layoffs began in January 2024

Though less than last year, the start indicates a significant likelihood of massive job cuts in the future. According to Layoffs.fy, around 32,000 employees have been let go by various companies. The layoffs are being carried out for multiple reasons, including restructuring, cost-cutting, and decreased demand for certain products and services.

One of the leading firms recently announced layoffs is Nokia, which expects to lose over 10,000 jobs worldwide, including 1,400 in India. The decision comes as Nokia appoints a new head of India as part of its global reorganisation efforts. In October 2023, the corporation revealed plans to cut up to 10,000 positions to reduce expenses and increase profitability.

Other major digital companies have undertaken layoffs

Other major digital companies that have undertaken layoffs in recent weeks include Amazon, Alphabet, and Microsoft, which have decreased their staff across multiple divisions and geographies. Some businesses have followed suit, including Snap, Snapchat's parent company, which announced a 10% reduction in global staff, affecting 540 people. EBay, an e-commerce site, also indicated that it would significantly lay off 1,000 workers after hiring during the pandemic.