Networking giant Cisco is reportedly cutting around 4,000 jobs, or about 5% of its staff, as part of a "rebalancing" effort and "rightsizing certain businesses," joining the Big Tech layoff season.
A report in the Silicon Valley Business Journal says that the change will lead to the loss of 4,100 jobs at Cisco, which employs 83,000 people worldwide.
Cisco announced $13.6 billion in revenue for the first quarter (Q1 2023) this week, an increase of 6% over the same period last year.
Cisco's chairman and CEO, Chuck Robbins, urged to withhold specific information about layoffs "Be hesitant to go into great detail until we can speak with them. What we're doing, in my opinion, is rightsizing some businesses ".
He told the analysts, "You can just assume that we're going to -- we're not actually -- there's nothing that's a lesser priority, but we are rightsizing certain businesses. The action was referred to as a "rebalancing" move by Scott Herren, chief financial officer at Cisco.
"Don't consider this a staff reduction initiative driven by cost-cutting measures. This is actually rebalancing. Chuck just mentioned some of the areas we would like to invest more in as we take a broad view. the transition to platforms, the increase in cloud-delivered products, security "During the company's earnings call, Herren said.
He said, "it is just slightly lower than the number of individuals that we feel would be impacted" if we look at the number of jobs that the company has launched in the areas that it is attempting to invest in.
"To the extent that there is a skill fit, we will strive extremely hard to assist in matching our personnel to such opportunities. We'll thus put a lot of effort into that "the comapny CFO said.
To cope with the challenging macroeconomic conditions, an increasing number of tech businesses, including Meta, Twitter, Salesforce, and others, have let go of thousands of people.
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