Leading network solutions provider Cisco is reportedly set to undertake substantial job cuts totaling in the thousands in the coming week. As per sources privy to restructuring plans, the move intends realigning the 85,000 strong workforce towards high-potential business verticals in a challenging macro climate.
An announcement detailing the severance strategy and impacted divisions could emerge alongside Cisco’s upcoming February 14th earnings call. The company had pared 5% of roles back in November 2022 as well signaling urgent optimizations amidst slowing enterprise IT spends.
Navigating Weakened Enterprise Technology Demand
Cisco join peers like Nokia, Ericsson and mega-caps such as Amazon, Meta in downsizing exercises triggered by inflation pressures constricting corporate tech investments – a key source of hardware and services revenues.
In its last earnings call, Cisco adjusted full-year guidance downwards citing extended lead times for client orders. It also shifted focus partly towards less affected security and software offerings as customers prolong refresh cycles guarding budgets. However, critics argue workforce rationalization risks competitiveness just when customer-centricity becomes pivotal wooing prospects.
