Cisco to cut 5% of global workforce
Companies planned 82,307 job cuts in January
‘Mounting’ tech layoffs are a way for companies to ‘boost’ balance sheets: Heather Zumarraga
Zuma Global President Heather Zumarraga reacts to a recent report revealing that tech companies have cut 32,500 jobs in 2024 on ‘The Big Money Show.’
Cisco is planning to cut 5% of its global workforce as part of a restructuring plan.
The company announced in a regulatory filing Wednesday that it is cutting jobs as part of its plan "to realign the organization and enable further investment in key priority areas" such as artificial intelligence.
The San Jose, California-based network giant employs approximately 84,900 people globally, according to its most recent annual report. This means more than 4,000 roles will be cut.
LAYOFFS SURGED 136% IN JANUARY TO SECOND-HIGHEST LEVEL ON RECORD
"We continue to align our investments to future growth opportunities," CEO Chuck Robbins said in the company's Wednesday earnings report. "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."
Cisco said it expects to incur $800 million in charges primarily due to severance and other related costs.
This isn't the first time the company laid off employees. Cisco cut about 5% of its global workforce in 2022, Reuters reported.
Cisco Systems headquarters in San Jose, California, US, on Monday, Aug. 14, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
It marks the latest in a string of layoffs that have been announced since the beginning of the year.
THE NUMBER OF HIGH-PAYING JOBS IS DWINDLING
Globally, about 141 tech companies have already cut over 34,000 jobs, according to Layoffs.fyi.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CSCO | CISCO SYSTEMS INC. | 58.71 | +0.08 | +0.14% |
However, companies across a variety of industries, from media to Wall Street, have also announced layoffs in recent weeks amid ongoing inflation and high interest rates.
According to a report from Challenger, Gray & Christmas, companies planned 82,307 job cuts in January. That's up 136% from the prior month and the second-highest layoff total for the month of January in data since 2009.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
However, that is down about 20% from the same time one year ago.
FOX Business' Megan Henney contributed to this report.