
Cisco (NASDAQ: CSCO) Announces Mass Layoffs, Affecting 4,100 Workers
The most recent tech business to execute mass layoffs was Cisco (NASDAQ: CSCO). These layoffs were expected, but nobody could foresee which employees would be impacted.
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CIO Applications Europe | Wednesday, December 07, 2022

Cisco (NASDAQ: CSCO) started implementing layoffs totalling five per cent of its workforce.
FREMONT, CA: The most recent tech business to execute mass layoffs was Cisco (NASDAQ: CSCO). These layoffs were expected, but nobody could foresee which employees would be impacted. These IT layoffs, while significant for the sector, are not typical of the overall job market. Instead, they're a sign of the peculiar conditions of our modern economy.
In this market sector, things could get worse unless some of those conditions alter. At Cisco, anticipated layoffs started earlier this week. The corporation said last month that 4,100 employees will lose their jobs, setting the stage for layoffs. This is roughly five per cent of the total workforce of the business.
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Although those employees have a good right to be alarmed, it seems Cisco has taken steps to limit the effects. While these layoffs are taking place, the corporation is restructuring and actively hiring new employees. According to Cisco, the company is doing everything it can to keep staff on board by relocating them from departments that are closing to new, available roles. Cisco anticipates having the same number of employees at the end of the year as they did at the start.
Cisco has stated that it will offer substantial severance compensation to any employees who lose their jobs. Cisco used the rationale of restructuring to justify a series of layoffs in 2021 even as it hired heavily in other areas. Just before the company's Q1 2023 earnings call last month, the layoffs were announced. The total sales increased by six per cent from the prior year to USD 13.6 billion. Net income, meanwhile, fell 10 per cent to USD 2.7 billion.
Cisco posted figures showing revenue by product but hasn't been particularly open about which departments may be facing job losses as a result of these layoffs.
About tech layoffs, there is a lot of news. Thousands of workers are going through a difficult period, but it's crucial to put these layoffs in their proper context. There are around 153.5 million jobs in the American economy. An estimated two per cent of these are tech employees.
Despite the significant amount of layoffs firms have witnessed over the past several months including nearly 11,000 at Meta, 3,700 at Twitter, and 1,000 at Stripe they pale in comparison to the state of the economy as a whole. Additionally, the tech industry operates differently from other market segments. Its financial success and failure are closely correlated with the state of the stock market.
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