By Utkarsh Shetti and Supantha Mukherjee
(Reuters) – Community large Cisco is planning to restructure its enterprise which can embrace shedding 1000’s of workers, because it seeks to give attention to high-growth areas, in response to three sources conversant in the matter.
The San Jose, California-based firm has a complete worker rely of 84,900 as of fiscal 2023, in response to its web site.
The corporate remains to be deciding on the full variety of workers to be affected by the layoffs, one particular person stated.
An announcement might come as early as subsequent week, as the corporate prepares for its earnings name on Feb. 14.
In November 2022, Cisco introduced throughout an earnings name a restructuring that impacted roughly 5% of its workforce which result in $600 million in severance and different prices.
Cisco declined to remark.
The transfer would come at a time when tech corporations, together with telecom makers Nokia and Ericsson, lower 1000’s of jobs final yr in a bid to decrease prices.
A number of massive tech companies similar to Amazon, Alphabet and Microsoft have applied layoffs in current weeks.
Cisco had lower its full-year income and revenue forecasts in its earlier earnings name, in an indication that demand for its networking tools was slowing.
It had blamed the weak point on a slowdown in orders within the first quarter, saying “prospects are presently targeted on putting in and implementing merchandise of their environments.”
The corporate has in recent times grappled with provide chain points and a post-pandemic slowdown in demand, which has hastened its push into software program choices like cybersecurity.
(Reporting by Utkarsh Shetti in Bengaluru and Supantha Mukherjee in Stockholm; Enhancing by Chris Reese)