Cisco Systems to Lay Off 7% of Its Workforce
Company cites need to align costs with current economic climate
Layoffs will impact various departments and job functions
Cisco Systems, the networking equipment maker, is planning to lay off 7% of its workforce. The company said in a statement that the layoffs are necessary to align its costs with the current economic climate. The layoffs will impact various departments and job functions across the company.
Cisco has been struggling in recent months as businesses have cut back on spending. The company's revenue declined by 5% in the most recent quarter, and its earnings per share fell by 18%. Cisco has also been facing increased competition from rivals such as Huawei and Arista Networks.
The layoffs are the latest in a series of cost-cutting measures that Cisco has implemented in recent months. The company has also frozen hiring and reduced travel expenses. Cisco is also exploring the sale of its non-core assets, such as its video conferencing business.
The layoffs are expected to impact approximately 6,700 employees. Cisco said that it will provide severance packages and other support to the affected employees.
Conclusion
The layoffs at Cisco Systems are a sign of the challenging times facing the tech industry. The company is not alone in facing economic headwinds. Other tech giants, such as Meta and Amazon, have also announced layoffs in recent months. The layoffs are likely to have a ripple effect on the economy, as the affected employees will now be looking for new jobs.
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