Networking major Cisco has initiated yet another round of job cuts across its organization. This time, which is the second round of layoffs in the year, the company has let go of approximately 5,600 employees, which represents around 7% of its total workforce. This move follows a similar reduction earlier this year, when Cisco laid off about 4,000 employees.
This newest round of layoffs is hardly unsurprising, given that Cisco announced its intention to reduce headcount in August 2024 but delayed releasing details about which employees and departments would be affected. It wasn’t until mid-September that the company finally informed staff, leaving many workers in a state of uncertainty for nearly a month. This delay has led to growing frustration among employees, many of whom felt left in the dark during the process.
Reports from within the company describe a worsening atmosphere, with some employees characterizing the work environment as toxic due to the lack of communication. TechCrunch, which first reported the layoffs, quoted one worker as saying that this had become the most negative work environment they had experienced at Cisco. The delay in notification created tension within the company, with employees uncertain about their futures for an extended period.
The 40-year-old Cisco currently develops and sells tech products and services across the globe, specializing in markets like the Internet of things (IoT), domain security, videoconferencing, and energy management. Its range of products include the likes of Webex, OpenDNS, Jabber, Duo Security, and Jasper. And now, Cisco’s official statement explained that the layoffs would enable the company to invest in growth opportunities and streamline its operations.
One of the most surprising aspects of the layoffs is the significant impact on Cisco’s Talos Security division. Talos is responsible for the company’s cybersecurity, conducting threat intelligence, research, and defending against cyberattacks. Given the increasing frequency and sophistication of cyber threats, cybersecurity is more crucial than ever for tech companies, and Cisco reduced the staff in this department. For now, the company did not release specifics about how many employees in Talos were affected.
This round of layoffs comes at a time when Cisco reported a considerable financial success this year (so far). The company reported its second-strongest year on record, with nearly $54 billion in annual revenue. Despite this performance, Cisco has cited the need to drive efficiency and focus on key growth areas as justification for the job cuts. Furthermore, Cisco’s layoffs are part of a larger trend in the tech industry, where major companies are increasingly focused on efficiency and restructuring, even as they post strong financial results. Numerous tech giants have announced similar layoffs throughout 2024, citing economic pressures, changing business models, and the need to invest in automation and digital transformation. So far, more than 137,000 employees across over 400 companies have lost their jobs this year.
