US-based vendor Cisco culled 4,000 jobs as part of a $600 million restructuring plan, the latest company in the broader technology sector to lay staff off at a time of global and domestic financial turbulence.
A representative for Cisco stated the job reductions accounted for approximately 5 per cent of its total full-time staff count. Its fiscal 2022 annual report, covering the period to 30 July, stated it had 83,300 employees at that point.
In a statement, the company explained the decision to lay off staff “was not taken lightly” and noted it was supporting those affected with “generous severance packages, job placement services and other benefits wherever possible”.
It detailed its restructuring plan in documents filed with the US Securities and Exchange Commission on 16 November, explaining the $600 million would cover the cost of the redundancies, property charges and other expenditure.
The information was revealed on the same day the company reported record revenue for its fiscal Q1 2023 along with a drop in net profit. On its earnings call, CFO Scott Herren explained the restructure advanced a strategy to refocus Cisco on cloud, security and enterprise networking.
He predicted a sale of underused offices would contribute to long-term cost savings.Subscribe to our daily newsletter Back