Cisco cuts thousands more jobs

The plan will affect about 5% of Cisco's global workforce. Cisco announced the layoffs as sales growth stopped in the latest quarter.

Cisco's sales stopped growing in the latest quarter. Photo: CRN

Cisco - one of the leading technology corporations headquartered in Silicon Valley, USA - has just announced that it will lay off thousands of employees in a restructuring plan.

The plan will affect about 5% of Cisco's global workforce. According to Bloomberg, Cisco announced the plan to cut staff as sales stopped growing in the latest quarter. In the fiscal quarter ended in January, Cisco's revenue reached $12.8 billion, down 6% from the same period last year. Profit for the quarter was $2.6 billion, down about 5% from the same period last year. After announcing the earnings figures, Cisco's stock fell more than 5% to $47.65.

Cisco agreed to buy cybersecurity company Splunk for $28 billion in late 2023 in its largest deal ever. Cybersecurity has become a big business for tech companies, and the deal puts Cisco on par with rivals Palo Alto Networks, Check Point, CrowdStrike, and Microsoft, analysts say.

Cisco also cut nearly 85,000 jobs last year. The scale of the current tech job cuts is not as large as in late 2022 and early 2023, when tech companies laid off hundreds of thousands of people - a consequence of the "fever" of hiring during the Covid-19 pandemic, when companies moved their operations online.

KHANH HUNG

Source: https://www.sggp.org.vn/cisco-cat-giam-tiep-hang-ngan-viec-lam-post726857.html