An American-based multinational digital communications technology conglomerate corporation, Cisco will be laying off more than 4,000 employees.
According to a report in Silicon Valley Business Journal, the company is laying off nearly 5 percent of its workforce. The company has described this as a “rebalancing” act while “rightsizing certain businesses.”
Cisco Chief Financial Officer Scott Herren said during the company’s earnings call said, “Don’t think of this as a headcount action that is motivated by cost savings. This is a rebalancing.”
“As we look across the board, there are areas that we would like to invest in more, Chuck just talked about them. Security, our move to platforms, and more cloud-delivered products,” Scott Herren added.
Scott Herren further added the move as a “rebalancing” act.
The company’s CFO said, “We’re going to work really hard to help match our employees to those roles as far as skills match is concerned. So, we’re going to work really hard on that.” going to do.”
Cisco Chairman and CEO Chuck Robbins said, “We’re able to talk to them. I would say what we’re certain businesses have the right to do”.
Cisco has an 83,000-strong workforce globally. Most Recently, Twitter laid off 50% of employee strength post the Elon Musk takeover. Followed by Meta laying off 11000 employees.
Salesforce has laid off hundreds of people this week. However, The company did not share an exact number but said it was less than a thousand.
There are many leading IT companies that either laid off employees or froze new hiring including Snap, TikTok, HCL Technologies, and Google. IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe, the biggest markets for the sector.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.
