In its most recent round of job cuts, tech giant Cisco Systems is planning to lay off 350 employees in Silicon Valley next month. Prior to this, the company had terminated approximately 4,000 employees to cut costs.
As per a recent filing with California's Employment Development Department, Cisco (CSCO) is slated to carry out layoffs affecting 227 individuals in San Jose and an additional 123 employees in nearby Milpitas, California, effective October 16th.
In the 2022, the networking company had disclosed plans to reduce its workforce by approximately 5%, equating to roughly 4,000 jobs. Additionally, state filings indicate that the company carried out layoffs affecting nearly 700 more employees in Silicon Valley in March.
The organisation took this action as part of a 'rebalancing' effort aimed at 'rightsizing certain businesses.' In an exclusive conversation with People Matters, the company's spokesperson said, "We had a strong first quarter, and to capture the opportunities ahead, we continuously evaluate our business priorities to ensure we are investing for future growth and unlocking new opportunities while remaining financially disciplined."
"Along with our earnings results in November, we announced a rebalancing of investments including a limited business restructuring impacting our real estate portfolio and approximately 5% of our workforce starting in December. This is not about cost savings - in fact, we'll have roughly the same number of employees at the end of this fiscal year as we had when we started, and we will do everything we can to help place affected employees in other open roles. We didn't take this decision lightly, and we will offer that impacted extensive support, including generous severance packages," added Cisco's spokesperson.
Other than this, in July of this year, numerous former and current Cisco employees turned to social media to share their reports of another round of internal layoffs. According to the company, these layoffs were a component of a restructuring plan that was originally disclosed last November. However, rumours about impending layoffs were circulating on Blind, a messaging board site. A post on Blind read, "My friend who is in higher management confirmed [layoffs]. I am scared."
According to a report by Fierce Telecom, Cisco confirmed that a round of layoffs took place in July. However, the company clarified that these layoffs were part of the 4,100 job cuts that had been previously announced in November. Cisco did not disclose specific details regarding the number of affected employees or the types of positions impacted in this week's layoffs.
Cisco's full statement:
"These recent notifications are part of the rebalancing effort we began in November 2022, which included a limited restructuring impacting our real estate portfolio and approximately 5% of our workforce. As we announced then, this is not about cost savings as we have roughly the same number of employees as we did before the process began. This rebalancing is about prioritising investments in our transformation, to meet and exceed our customers' expectations in the changing technology landscape. We will continue to do everything we can to help place affected employees in open roles and offer extensive support including generous severance packages."
In August, Cisco reported a substantial increase in annual revenue, primarily attributed to higher prices, although its outlook for 2024 remained cautious. Cisco's shares have seen an approximately 18% increase year-to-date, outperforming the S&P 500's gain of 16%.