According to a report by TechCrunch, the job cuts have also also affected Talos Security – the company’s threat intelligence and security research unit.
Second round of job cuts at Cisco
The technology and networking company announced in August that it will reduce its headcount by 7%, or around 5,600 employees. However, reports suggested that employees continued to face weeks of uncertainty about their fate as the company delayed informing affected employees until September 16.
Despite the layoffs, CEO Chuck Robbins expressed optimism about rebounding demand for Cisco’s networking equipment.
“Inventory digestion is complete and we’re now returning to a more normalised demand environment,” he said.
Moreover, the company did not give any reason for the month-long delay in notifying the affected staff. This is Cisco’s second round of layoff, with the first layoff in February leading to about 4,000 job cuts. Reportedly, an employee told the publication that Cisco’s workplace is one of the “most toxic environments” they had worked in.
Why Cisco is laying off employees
Last, Cisco announced its second round of layoffs for the year, stating it would enable the company to invest in growth and improve efficiency.
“Cisco announced a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business,” the company stated in an SEC filing. As part of the restructuring, the company plans to combine its networking, security and collaboration departments into a single organisation.
Notably, this announcement coincided with the release of their full-year earnings report, highlighting 2024 as their “second strongest year on record” with nearly $54 billion in revenue. CEO Chuck Robbins’ total executive compensation for 2023 was close to $32 million, as per company filings.
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