© Reuters. FILE PHOTO: An indication bearing the emblem for communications and safety tech large Cisco Techniques Inc is seen outdoors one in every of its workplaces in San Jose, California, U.S. August 11, 2022. REUTERS/Paresh Dave/File Picture
By Utkarsh Shetti and Supantha Mukherjee
(Reuters) -Community large Cisco (NASDAQ:) is planning to restructure its enterprise which can embody shedding hundreds of staff, because it seeks to deal with high-growth areas, in accordance with three sources accustomed to the matter.
The San Jose, California-based firm has a complete worker rely of 84,900 as of fiscal 2023, in accordance with its web site.
The corporate continues to be deciding on the whole variety of staff to be affected by the layoffs, one individual 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 expenses.
Cisco declined to remark.
The transfer would come at a time when tech firms, together with telecom makers Nokia (HE:) and Ericsson (BS:), lower hundreds of jobs final yr in a bid to decrease prices.
A number of massive tech corporations equivalent to Amazon (NASDAQ:), Alphabet (NASDAQ:) and Microsoft (NASDAQ:) 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 gear was slowing.
It had blamed the weak point on a slowdown in orders within the first quarter, saying “clients are at the moment centered on putting in and implementing merchandise of their environments.”
The corporate has lately grappled with provide chain points and a post-pandemic slowdown in demand, which has hastened its push into software program choices like cybersecurity.