Cisco Systems to Layoff 7% of Workforce
Second Round of Job Cuts This Year
Cisco Systems, one of the largest makers of computer networking equipment, announced on Wednesday it would be cutting 7% of its global workforce. This is the second round of job cuts the company has made this year.
The company has not yet announced how many employees will be affected, but it is expected to be in the thousands. The layoffs are part of a restructuring plan that will see the company shift its focus to software and services.
In a statement, Cisco said: "The decision to reduce our workforce was not made lightly. We are committed to helping our employees through this transition and will be providing them with severance packages and other support."
The company's stock price fell 2% in after-hours trading on Wednesday.
Reasons for the Layoffs
- Shifting focus to software and services
- Increased competition from cloud-based providers
- Economic downturn
Impact on the Industry
The layoffs at Cisco Systems are a sign of the changing landscape of the tech industry. Companies are increasingly focusing on software and services, and traditional hardware makers are struggling to keep up.
The layoffs are also a reminder of the economic downturn that is affecting the tech industry. Many companies are cutting costs and laying off employees in an effort to weather the storm.
Outlook for the Future
It is unclear what the future holds for Cisco Systems. The company is facing a number of challenges, but it is also a leader in the networking industry.
The company's focus on software and services could help it to weather the current downturn and emerge stronger in the long run.
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