Cisco Announces Layoffs Amidst Shifting Focus and Rebounding Demand

Layoffs and Restructuring

Cisco Systems is cutting 7% of its global workforce, amounting to approximately 4,100 employees.
This marks the second round of job cuts this year, following a 5% reduction in February.
The layoffs are part of a broader restructuring plan to shift focus towards high-growth areas.

Despite the layoffs, Cisco reported witnessing a rebound in demand for its networking equipment.

This resurgence is attributed to increased spending on digital transformation and hybrid work setups.

Cisco is shifting its focus towards areas such as software, cybersecurity, and cloud services.

These sectors are expected to drive future growth and innovation within the company.

Cisco is providing severance packages, healthcare continuation, and job placement support to affected employees.

The company is also working with organizations to offer training and re-employment opportunities.

Cisco's financial performance has been impacted by the pandemic and ongoing supply chain disruptions.

However, the company remains optimistic about its long-term growth prospects.

The networking equipment market is expected to continue growing in the coming years.

Factors such as the rise of 5G and the increasing adoption of cloud-based services are driving demand.