Cisco is set to cut its global headcount by 5%. One of the leading tech companies in the United States is reportedly set to reduce its workforce by 5%. And everything you need to know about this news will be shared in the course of this post.
Cisco to Cut Its Global Headcount
American technology giant Cisco is set to reduce its global workforce by 5%, resulting in thousands of employees needing to update their resumes. This move comes as the company aims to shift its focus towards high-growth areas such as artificial intelligence and software development.
Cisco is renowned for its extensive range of networking hardware, including routers, switches, firewalls, and Wi-Fi devices, with a presence spanning 92 countries and over 3,000 communities worldwide. In Africa, Cisco maintains a strong presence in 23 countries, including Nigeria, Kenya, Egypt, Algeria, South Africa, Ethiopia, Angola, and Tunisia.
Challenges Encountered By Cisco
However, Cisco has encountered challenges with traditional switches and routers, exacerbated by inventory clearance during the pandemic. Consequently, the company has revised its revenue projections for the year to $51.5 billion to $52.5 billion, marking a decrease from its initial forecast.
The job cuts are anticipated to have the most significant impact in the third quarter of fiscal 2024, with CEO Chuck Robbins emphasizing the company’s strategic alignment of investments with future trends. Robbins stated, “Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”
How the Cutoffs Will Affect Cisco
With nearly 85,000 employees affected, Cisco faces an estimated $800 million expense for severance and related costs. Nevertheless, the company remains optimistic about leveraging the AI boom and software advancements to drive its turnaround. Cisco believes that its combination of innovative solutions positions it well to lead in security and observability in the era of AI.
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