Cisco Systems to cut thousands of jobs as tech industry layoffs expand
SAN JOSE — Cisco Systems Inc. plans to cut thousands of employees worldwide, dealing a new shock to the volatile Bhatia region's economy and raising fears that job cuts at the region's technology companies are not over yet.
Legendary tech giant Cisco has threatened to cut 7% of its workforce, it said in an Aug. 14 filing with the Securities and Exchange Commission.
“Cisco has announced restructuring plans to capitalize on key growth opportunities and drive operational efficiencies,” the company said in a filing with the SEC. “The restructuring plans are expected to impact approximately 7% of Cisco's global workforce.”
San Jose-based Cisco employs approximately 84,900 people worldwide as of July 2023. A 7% reduction from a workforce of that size would equate to roughly 5,900 employees.
The job cuts announced Thursday are the second such announcements by the network giant this year.
Cisco announced plans in February to lay off 5% of its global workforce, translating into 4,200 job losses.
Cisco has disclosed plans to cut 1,754 Bay Area jobs so far in 2023 and 2024, according to a compilation by this news organization of the official WARN notice the company sent to the state Employment Development Department.
According to a WARN notice at the time, Cisco cut 4,200 jobs worldwide in February, which included cutting 731 Cisco employees in the Bay Area. The February cuts affected employees in San Jose, Milpitas and San Francisco.
Cisco said it is beginning to see positive signs in its business as it works to reduce its reliance on its traditional computer networking business and shift resources to cutting-edge efforts such as artificial intelligence.
“We're seeing increased ordering and steady customer demand across our business as customers turn to Cisco to connect and secure every aspect of their organization in the AI era,” said Cisco CEO Chuck Robbins.
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