Cisco, a leading player in the networking industry, has announced another significant round of layoffs, affecting approximately 5,600 employees—around 7% of its total workforce. This marks the second wave of job cuts this year, following the termination of 4,000 employees earlier. Despite posting strong financial results, the company continues to streamline operations to focus on key growth sectors.
Layoffs Follow Uncertainty and Delays
The decision to cut jobs didn’t come as a surprise, as Cisco had hinted at workforce reductions back in August 2024. However, the company delayed providing specifics, leaving many employees in a state of uncertainty for nearly a month. The lack of communication reportedly created tension within the organization. A Cisco employee shared with TechCrunch that the prolonged silence led to a "toxic" work environment, making the period particularly difficult for staff.
Now that the layoffs have been confirmed, employees across various departments are dealing with the fallout. Cisco’s official statement explains that these cuts are necessary to enable the company to invest in future growth areas such as cloud technology, artificial intelligence (AI), and automation.
Talos Security Division Also Affected
A surprising aspect of this latest round of layoffs is the significant reduction in Cisco's Talos Security division, which handles cybersecurity, threat intelligence, and protection against cyberattacks. Given the rising threat of cyberattacks, the decision to cut staff in this crucial area has raised concerns. Cisco, however, has not revealed the exact number of employees impacted in Talos.
What makes the layoffs more perplexing is that they come during one of Cisco’s strongest financial years. The company reported nearly $54 billion in revenue, its second-highest ever. Despite this financial success, Cisco is focusing on driving efficiency and prioritizing long-term investments in emerging growth sectors, according to its official explanation.
Cisco is not alone in making cuts during 2024. Several other tech companies have also implemented layoffs, despite solid financial performances. More than 137,000 employees across over 400 companies have lost their jobs this year. With the tech industry shifting toward automation, digital transformation, and cost-cutting, many expect further layoffs in the near future.
With inputs from agencies
Image Source: Multiple agencies
© Copyright 2024. All Rights Reserved Powered by Vygr Media.
