Cisco Systems To Lay Off 7% of Workforce, Take $1 Billion Hit in Restructuring
Job Cuts Amidst Economic Uncertainty
Cisco Systems, one of the largest makers of computer networking equipment, announced on Wednesday that it will lay off approximately 7% of its workforce, affecting up to 5,500 employees.
Second Round of Layoffs This Year
This latest round of layoffs comes after Cisco laid off about 1% of its workforce in February of 2023. The company has stated that the cuts are part of a broader restructuring plan to reduce costs and improve efficiency.
Restructuring and Cost-Cutting Measures
Cisco will spend between $700 million and $800 million on the restructuring, which is expected to include severance packages, employee benefits, and other related costs.
Key Points:
- Cisco to lay off up to 5,500 employees or 7% of its global workforce.
- The company will spend between $700 million and $800 million on restructuring costs.
- This is the second round of job cuts at Cisco in 2023.
- The layoffs are part of a broader restructuring plan to reduce costs and improve efficiency.
Challenging Macroeconomic Environment
Cisco's decision to cut its workforce is in line with a trend of other tech companies announcing layoffs in recent months. The global economy is facing significant challenges, including rising inflation, interest rate hikes, and the ongoing war in Ukraine.
Impact on the Tech Industry
The layoffs at Cisco are expected to have a significant impact on the tech industry. The company is a major supplier to other tech firms, and the job cuts could lead to a ripple effect throughout the sector.
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