Another one bites the dust—employees are the ones left scrambling as the recent announcement of Cisco layoffs marks another industry resorting to job cuts to see company growth. U.S.-based networking company Cisco appears to be next in line to execute a pretty sizable number of job cuts, joining the already extensive list of layoffs in 2024. The company has been reported to have 84900 employees on its payroll currently and it’s uncertain just how many of them will be affected by the layoffs. The decision could be finalized after an earnings call on 14 February where their plans will be consolidated in relation to their goals.
Cisco Layoffs Just Around the Corner
The Cisco restructuring news does not come as a shock to most as it seems that every big company is set to downsize before it refocuses its energy more precisely on its goals. According to Reuters, in a previous earnings call, the company had cut its full-year revenue and profit forecasts as the demand for its networking equipment was no longer as relevant as it once was in the past. The company is reportedly facing a slowdown in its orders this quarter as a result of its customers being “focused on installing and implementing products in their environments.”
The next earnings call where the Cisco layoffs will be discussed is scheduled for 14 February 2024 at 1:30 PM PT, and a recorded playback of it will be available at 4 PM PT the same day. The result of the second quarter of fiscal year 2024 will be presented by the company, which should provide significant clarity on how things are proceeding for the organization. The last time we’d heard of Cisco’s restructuring efforts, 5 percent of their workforce was affected, with $600 million paid out in severance and other associated expenses. The number of job cuts at Cisco this time around will definitely be just as significant if not higher than the 2022 round.
Cisco Successes Insufficient To Avoid Layoffs 2024 Trend
Cisco’s extensive collaborations with the likes of Microsoft and Apple in the most recent times might be taken as signs of the company’s success but it is still hard to predict which companies are doing well enough to avoid a layoff in 2024. Microsoft too laid off 1900 employees from its newly consolidated gaming division and saw some top executives leave the company at the same time. AI trends have been the biggest earning points for many companies and Cisco has done what it can to capitalize on that avenue as well. Supporting the deployment of generative AI in organizations that are new to the delicacies of working with AI, the company launched its Motific system to ensure the highest possible safety standards for companies taking the leap.
In 2023, Cisco reportedly initiated the acquisition of ten separate companies in order to expand their services. This included SamKnows Limited, Valtx, Armorblox, Oort, Lightspin, Smartlook, Accedian Networks, Code BGP, Splunk, and Working Group Two (WG2). Splunk laid off 7 percent of its workforce, around 500 employees, ahead of the $28 billion acquisition by Cisco. Again, these large-scale investments may lead you to believe in the financial stability of the organization, but it seems the data is misleading.
Despite these advances, it seems the Cisco layoffs are still imminent for the company to cut down on their expenses in terms of restructuring the workforce. The employees affected by the upcoming Cisco job cuts should receive satisfactory compensation and severance packages but no amount of benefits will likely outweigh the mental stress and uncertainty that employees are currently facing with regard to work and employment. We’re still hoping that after the initial layoffs of 2024, organizations will move towards retention efforts instead but that remains hard to confirm.