Cisco to Cut 7% of Workforce in Second Round of Layoffs

Company Shifts Focus Amidst Economic Headwinds

Layoffs Impact Thousands of Employees Globally

Cisco Systems, a leading provider of computer networking equipment, announced plans to lay off approximately 7% of its global workforce. This marks the company's second round of job cuts this year, following approximately 4,000 layoffs in February.

The decision comes as Cisco grapples with economic headwinds and shifting market dynamics. The company has been investing heavily in new technologies, such as cloud computing and software-defined networking, while facing increased competition from rivals.

Layoffs Expected to Impact Multiple Regions

Cisco did not specify the exact number of employees affected by the layoffs, but sources estimate the cuts will impact thousands of workers globally. The layoffs are expected to impact multiple regions and business units.

The company stated that the layoffs are part of a broader restructuring plan aimed at aligning its operations with its long-term growth strategy. Cisco expects to save approximately $1 billion in annualized expenses through the restructuring.

Focus on Growth and Innovation

Despite the layoffs, Cisco remains committed to investing in its business. The company recently announced better-than-expected first-quarter revenue and expressed confidence in its long-term prospects.

Cisco's CEO, Chuck Robbins, stated that the company is "taking decisive actions to reduce costs, sharpen our focus, and invest in our long-term growth." He added that Cisco remains committed to innovation and delivering value to its customers.

Industry Impact and Outlook

Cisco's layoffs are a reflection of the ongoing challenges facing the tech industry. As companies shift their focus towards emerging technologies, they are also streamlining their workforces to reduce costs and improve efficiency.

The layoffs are expected to have a limited impact on Cisco's overall operations. The company remains a dominant player in the networking industry, and its investments in new technologies are expected to drive future growth.