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Cisco To Concentrate On High Growth Sectors, To Eliminate Thousands Of Jobs – Reuters

Cisco To Concentrate On High Growth Sectors, To Eliminate Thousands Of Jobs – Reuters
Network giant Cisco plans to restructure its operations in order to concentrate on high-growth areas. This reorganisation will involve the layoff of thousands of employees, according to a Reuters report quoting three people familiar with the situation,.
As of fiscal 2023, the San Jose, California-based corporation employed 84,900 people overall, according to its website.
One person claimed that the corporation is still determining how many workers would be laid off in total.
As the business gets ready for its results call on February 14, an announcement can be made as early as next week.
During an earnings call in November 2022, Cisco disclosed a restructure that affected approximately 5% of its workers and resulted in severance and other charges totaling $600 million.
There were no comments from Cisco on the issue.
The action would take place at a time when tech firms, such as telecom manufacturers Ericsson and Nokia, are opening new tabs and laying off thousands of workers in an effort to reduce expenses.
In recent weeks, a number of large IT companies, including Microsoft, Alphabet, and Amazon, have conducted layoffs.
In a signal that the market for its networking equipment was slowing down, Cisco had lowered its predictions for full-year sales and profit during its most recent results call.
The company attributed the deficit to a decrease in orders during the first quarter, citing the fact that "customers are currently focused on installing and implementing products in their environments."
Due to supply chain problems and a post-pandemic slump in demand, the company has accelerated its push into software products like  cybersecurity. 

Christopher J. Mitchell

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