Layoffs 2024: Cisco Systems Announces 5% Workforce Reduction

Cisco Systems, a prominent player in the technology industry, has joined the ranks of companies announcing significant job cuts as part of a major restructuring effort.

The company, known as the largest manufacturer of computer networking equipment, revealed plans to reduce its global workforce by approximately 5%, equating to around 4,000 employees.

This decision comes as Cisco encountered a slowdown in sales growth attributed to decreased technology spending.

The company cited a temporary "pause" in orders from customers who are currently focused on installing equipment they have already acquired.

In an effort to mitigate sales volatility, Cisco is shifting its focus towards offering more networking services and prioritizing subscription revenue.

As part of this strategic move, the company recently announced the acquisition of data-crunching software maker Splunk for $28 billion.

Additionally, Cisco has revised its annual revenue expectations, lowering them to $51.5 billion from the previously anticipated $52.5 billion.

Cisco's workforce reduction contributes to the overall tally of job cuts across the tech industry in 2024, which has reached approximately 35,000 according to Layoffs.fyi, a platform that tracks tech job cuts.

Various renowned tech companies, including Flipkart, Twitch, Instagram, Google, YouTube, and TikTok, have announced layoffs this year.

Among these, German software major SAP leads with the highest number of layoffs, affecting 8,000 positions.

It's worth noting that the reported figures reflect layoffs disclosed by the companies, with some, like Google and Amazon, choosing not to disclose specific numbers.