This season’s IT layoffs have come as nothing less of a bombshell to many. Cisco has reportedly now joined this list of firms that have fired employees, following Meta, Twitter, Amazon, and a few more businesses.
According to the most recent information, Cisco layoffs are now a thing, with the business reportedly aiming to eliminate around 4,000 jobs while having nearly 83,000 employees.
Cisco’s Decision to Layoff
According to a report in the Silicon Valley Business Journal, Cisco would effectively reduce its employment by 5% as a result of its plan to lay off workers. According to the article, the company decided to do this as part of a “rebalancing” effort while “rightsizing certain operations.”
Chuck Robbins, Chairman, and CEO of Cisco is quoted in the paper as saying he would like not to go into great detail until they get the opportunity to speak with the affected employees. He added that certain businesses are being rightsized as a result of what is being done.
Furthermore, he was also quoted in the report thus mentioning: “You can just assume that we’re going to—we’re not actually—there’s nothing that’s a lower priority, but we are rightsizing certain businesses.”
Word from CFO of Cisco
The action was referred to as a “rebalancing” move by Scott Herren, chief financial officer at Cisco. Herren advised not to view this as a workforce reduction driven by cost savings during the company’s earnings call. This is actually rebalancing. Chuck just mentioned some of the areas they would like to invest more in as they take a broad view. Coming to the Security, he mentioned that their transition to platforms, and an increase in cloud-delivered goods.
Based on the sources, he said that when comparing the number of jobs the company has created in the regions where it is attempting to invest, it is only marginally higher than the number of people who will be impacted, in our opinion.
Moreover, the company CFO added that to the extent that there is a skill match, they will work extremely hard to assist in matching the employees to those roles. They will therefore put a lot of effort into that.
Cisco has joined a growing list of tech firms that have fired thousands of workers in order to cope with the challenging macroeconomic conditions, including Meta, Twitter, Salesforce, and others.