According to California state government documents, Cisco Systems is set to lay off hundreds of staff. The official documents state that the American tech company with its headquarters in San Jose, will lay off the staff in the South Bay area next month.
Cisco Systems is a leading tech infrastructure company in the U.S. This is the second round of layoffs this year, with the first round occurring in July. The layoffs will affect workers in San Jose and Milpitas offices. The company will lay off 227 workers in San Jose and 123 workers in Milpitas. The layoffs are part of the company’s efforts to restructure and streamline its operations. The documents also say that the layoff will take effect from October 16th, which is about a month from now.
Cisco Systems is a multinational technology company that designs, manufactures, and sells networking equipment, software, and services. The company was founded in 1984 and is headquartered in San Jose, California. It is one of the largest technology companies in the world, with over 75,000 employees and a market capitalization of over $200 billion.
However, just like other tech firms, Cisco has been cutting down on its staffing in recent times. At the end of 2022, Cisco Systems laid off more than 4,000 staff at one time, accounting for 5% of its total workforce. This was one of the largest layoffs that year.
The layoffs are part of Cisco’s ongoing efforts to restructure and streamline its operations. The company has been facing increased competition in recent years, particularly from cloud-based networking brands. In response, Cisco has been shifting its focus towards software and services, and away from hardware.
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The layoffs are expected to affect a wide range of staff, including engineers, managers, and support staff. The affected staff will receive severance packages and outplacement services to help them find new jobs.
Also, at some point, Chief Financial Officer, Scott Herron said on an earnings call that the layoffs were “a rebalancing” and not motivated by cost savings. In March, the company laid off another 673 staff at its offices in Milpitas, San Francisco and San Jose.
Just as Scott Herron says, the layoffs are not motivated by cost savings because the company’s finances are pretty stable. According to its August earnings, Cisco Systems reported revenue of $12.6 billion for the fiscal year ending July 29. This is an increase of 7% over last year.
Impact on Staff and the Industry
The layoffs are likely to have a huge impact on the affected staff, as well as the broader technology industry. Many of the affected staff are highly skilled and experienced and may have difficulty finding new jobs in a competitive job market. The layoffs may also have a ripple effect on the local economy, as the affected staff may have less money to spend on goods and services.
The layoffs are also a sign of the ongoing issues facing the technology industry. Many brands are facing increased competition and pressure to cut costs, which has led to a wave of layoffs and restructuring efforts. While these efforts may help companies stay competitive in the short term, they may also have long-term consequences for the industry as a whole.
Cisco Systems is set to lay off another 350 employees in October. This is part of its ongoing efforts to restructure and streamline its operations. The layoff is also part of the company’s shift towards software and services. It is expected to affect workers in San Jose and Milpitas offices. While the layoffs may help Cisco stay competitive in the short term, they may also have long-term consequences. This is mostly for affected staff and the broader technology industry.