In Silicon Valley, a big tech company’s move has shaken the industry. Cisco, famous for its networking solutions, has cut thousands of jobs for the second time in 2024.
Cisco’s Second Layoff 2024 news surprised many. Cisco had already cut about 4,000 jobs in February. Now, they plan to cut 7% more, or around 5,600 jobs, in the latest layoffs.
The plan to cut jobs is expected to cost Cisco up to $1 billion before taxes. Many employees are worried. One worker called the workplace “the most toxic environment” they’ve ever seen, showing the emotional impact of these layoffs.
Cisco’s move to cut jobs is part of a bigger trend in the tech world. In August 2024, over 27,000 tech jobs were lost. This year, 136,000 jobs were cut across 422 companies.
Cisco Announces Second Major Layoff in 2024, Impacting Thousands
Cisco Systems Inc. has made a big move by cutting its workforce for the second time in 2024. This time, it’s about 5,600 jobs, or 7% of its global staff. This move comes after a layoff in February that cut around 4,000 jobs.
Layoffs Target Workforce Reduction by 7%
The latest layoffs are part of Cisco’s plan to restructure. This plan is expected to cost up to $1 billion before taxes. Cisco expects to recognize between $700 million and $800 million of this cost in the first quarter.
Cisco is cutting jobs due to tough times in the tech industry. The slowdown in spending from corporate customers is a big challenge. Cisco’s sales for the fiscal third quarter are expected to be between $12.1 billion and $12.3 billion. This is less than what analysts predicted.
Previous Layoff in February Affected 4,000 Employees
The recent layoffs are the second big cut in 2024. The first was in February, affecting 4,000 employees. Cisco had about 85,000 employees at the end of its last fiscal year. The latest cuts will reduce that number by another 5,600.
Cisco is trying to stay ahead in a competitive market. But, these layoffs are worrying for current employees. They are concerned about their jobs and future at Cisco.
| Key Statistics | Details |
|---|---|
| Cisco Workforce Reduction | Approximately 5,600 employees or 7% of global workforce |
| Previous Layoff | Around 4,000 employees in February |
| Restructuring Costs | Up to $1 billion before taxes, with $700-$800 million recognized in Q1 |
| Projected Sales Impact | Fiscal Q3 sales expected between $12.1-$12.3 billion, below analyst estimate of $13.1 billion |
Cisco’s Second Layoff 2024 Affects Thousands of Employees
Cisco, a leading U.S. tech company, has cut thousands of jobs in its second layoff of 2024. In August, it announced a 7% reduction in staff, about 5,600 employees. This follows a February layoff where it let go of around 4,000 employees.
The layoffs are due to declining demand and the need to cut costs. Cisco is investing heavily in AI, which requires significant spending. The company expects to spend up to $1 billion on restructuring before taxes.
The Cisco job cuts 2024 have hit the Bay Area hard. Over 1,000 tech jobs are lost due to Cisco, IBM, and Advantest layoffs. Cisco alone is cutting 842 jobs in the Bay Area. This includes 563 jobs in San Jose, 145 in Milpitas, and 134 in San Francisco.
| Company | Jobs Cut in Bay Area | Locations Affected |
|---|---|---|
| Cisco | 842 | San Jose, Milpitas, San Francisco |
| IBM | 112 | San Francisco, San Jose |
| Advantest | 88 | Fremont |
The Cisco workforce reduction and broader tech industry layoffs 2024 show the tech sector’s challenges. Economic uncertainty and changes in demand are big hurdles. Companies like Cisco are focusing on AI and cybersecurity to stay ahead in the tech world.
Conclusion
Cisco has cut 7% of its workforce, or about 5,600 employees, in its second major layoff this year. This move comes after a 4,000-employee layoff in February. The company is facing declining demand and needs to cut costs to focus on AI and cybersecurity.
Cisco’s efforts to restructure will likely cost a lot, showing the tough times for tech. Many tech companies, like Microsoft and WeTransfer, have also laid off workers. This is because of the changing market.
Cisco must now adjust its operations and workforce to stay competitive. The tech world will watch how these changes affect Cisco and the industry’s recovery. This is especially important during uncertain economic times.
