Cisco Systems has revealed plans to cut 7% of its global workforce as part of a major restructuring initiative aimed at driving operational efficiency and investing in key growth areas. This announcement marks the second round of layoffs by the tech giant this year. Earlier in February, Cisco had already reduced its staff by nearly 4,000 employees.
In a recent filing with the US Securities and Exchange Commission (SEC), Cisco outlined its strategy to cut costs by $1 billion. The restructuring plan will involve severance and other one-time termination benefits, with the company projecting that it will incur between $700 million to $800 million in charges during the first quarter of fiscal 2025. The remaining expenses related to the layoffs are expected to be recognized throughout the rest of the fiscal year.
The decision to implement these layoffs is part of Cisco’s broader effort to streamline its operations and better position itself for future growth. The company is focusing on enhancing efficiencies within its business and reallocating resources towards strategic investments.
Cisco’s restructuring plan reflects the company’s ongoing efforts to adapt to changing market conditions and technological advancements while pursuing new growth opportunities in AI and cybersecurity. As the company navigates these significant changes, it remains focused on leveraging its investments to drive future innovation and enhance its competitive position in the tech industry.
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