Cisco is set to initiate a significant round of layoffs this week as part of its strategy to refocus on growth areas. The move comes amidst a broader trend in the tech industry of companies streamlining their operations to adapt to changing market conditions.
While the exact number of employees to be affected has not been disclosed by Cisco, sources familiar with the matter suggest that the announcement could come as early as this week, coinciding with the company's upcoming earnings call on February 14. With a global workforce of 84,900 in fiscal 2023, the anticipated layoffs are expected to make a notable dent in Cisco's employee count, reported Business Today.
The decision to downsize comes as Cisco faces challenges stemming from a decline in demand for its products. In a previous earnings call, the company revised its full-year revenue and profit forecasts downwards, citing a slowdown in orders. This shift in demand reflects customers' current focus on deploying and integrating existing products rather than investing in new ones.
However, Cisco is not alone in its restructuring efforts. The tech sector as a whole has been grappling with layoffs and uncertainty since the latter part of 2022. Various companies have been trimming their workforces as they seek to cut costs and streamline operations in response to changing market dynamics.
Nokia, a prominent telecom maker, recently announced plans to reduce its workforce by over 10,000 employees worldwide, including a significant number in India. This decision comes as part of Nokia's broader restructuring initiative aimed at enhancing profitability and competitiveness in the global market.
Other major tech firms such as Amazon, Alphabet, and Microsoft have also implemented layoffs in recent weeks, affecting various divisions and regions. Additionally, startups like Snap and eBay have announced workforce reductions as they navigate evolving business landscapes.
As the tech industry continues to undergo transformations, companies like Cisco are making strategic decisions to realign their priorities and pursue growth opportunities in an ever-changing market environment.
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