According to the latest reports, San Jose-based American Multinational tech conglomerate, Cisco has reportedly started laying off more than 4000 employees as part of cutting down costs and extra expenses. The tech company had a few weeks ago announced that it will be conducting a mass layoff soon. If reports are correct, Cisco is now laying off nearly 5 per cent of its entire workforce.
There is unverified information that Cisco workers have started to discuss tips for new jobs, and severance package details on TheLayoff.com and the anonymous professional networking site Blind. Cisco has reportedly informed employees that they are going to be laid off from the company.
Cisco is not the first American tech giant to lay off employees in large numbers. Multinational conglomerates such as Meta, Amazon, Twitter, Lenovo, Salesforce, and Adobe had earlier laid off thousands of employees as part of cutting costs. Reducing revenue and surging costs of operations had put huge pressure on the financials of tech companies.
Statistics suggest that nearly 2 lakh tech employees have lost their jobs over the last 12 months.
As analysts are now talking about the possibility of a recession in the United States by mid-2023, tech companies are bracing for the same by taking monetary and non-monetary action. The companies have also been suffering a decline in stock prices due to high volatility in the global capital markets.
Cisco had last month reportedly decided to lay off five per cent of its workforce, totaling around 4,000 people.
A report in the Silicon Valley Business Journal said the company has decided to take this step in a ‘rebalancing’ act while ‘rightsizing certain businesses.’
The report added that Chuck Robbins, the Chairman and CEO of Cisco “did not divulge any detail on laying off employees, saying he would be reluctant to go into a lot of detail here until we’re able to talk to them. I would say that what we’re doing is rightsizing certain businesses.”
The report further quotes the Chairman and CEO as saying, “You can just assume that we’re going to-we’re not actually-there’s nothing that’s a lower priority, but we are rightsizing certain businesses.”
The stock of Cisco Systems Inc, listed on NASDAQ with CSCO ticker rose by 0.69% on Tuesday to conclude trading at 49.64 US Dollars per share. In the last 12 months, the stock value has declined by nearly 14.07%.