Exclusive: Cisco to cut thousands of jobs as it seeks to focus on high growth areas -sources

Network titan Cisco is poised for a major restructuring, planning to cut thousands of jobs as it shifts its focus towards high-growth areas, according to sources familiar with the matter. This move comes amidst slowing demand for its core networking equipment and follows a previous round of layoffs in November 2022.

The axe is about to fall across various departments, though the exact number of positions targeted remains under wraps. The company is currently finalizing the details and an official announcement could come as early as next week, coinciding with its upcoming earnings call.

Why the shakeup? Facing a slowdown in orders and a need to streamline operations, Cisco is betting on refocusing its resources on sectors with greater growth potential. These areas include cybersecurity, cloud computing, and software-defined networking (SDN).

Not their first rodeo: This isn’t Cisco’s first foray into job cuts. In November 2022, the company let go of roughly 5% of its workforce, attributing it to a shift in customer buying patterns. This latest round, however, seems to be more extensive, signaling a significant strategic shift.

The human cost: While Cisco aims to bolster its bottom line, the news undoubtedly deals a blow to its employees. The company has yet to comment on severance packages or redeployment opportunities, leaving many with uncertainty about their future.

Industry ripple effects: Cisco’s move reflects a broader trend in the tech sector, with companies like Amazon, Alphabet, and Microsoft implementing layoffs in recent months. It highlights the challenging economic climate and the pressure on tech giants to adapt and innovate.

The road ahead: Cisco’s success in navigating this restructuring will hinge on its ability to effectively reallocate resources, support its departing employees, and capitalize on emerging opportunities. While the short-term may be bumpy, the company hopes this strategic shift will pave the way for renewed growth and long-term prosperity.

This story is developing, and we will update it as soon as more information becomes available.

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