In a continuation of its cost-cutting measures, technology giant Cisco Systems is preparing to lay off 350 employees in Silicon Valley next month.
This move follows a previous round of job terminations that affected approximately 4,000 employees.
According to a recent filing with California's Employment Development Department, Cisco (CSCO) plans to carry out layoffs impacting 227 individuals in San Jose and an additional 123 employees in nearby Milpitas, California, starting on October 16th.
In 2022, Cisco had revealed its intention to reduce its workforce by around 5%, which equated to roughly 4,000 job cuts.
Additional state filings indicate that the company conducted layoffs affecting nearly 700 more employees in Silicon Valley in March.
This action is part of a broader effort by the organization to "rebalance" its operations and "rightsize certain businesses." In a conversation with People Matters, a spokesperson for the company explained,
"We had a strong first quarter, and to capture the opportunities ahead, we continuously evaluate our business priorities to ensure we are investing for future growth and unlocking new opportunities while remaining financially disciplined."
The spokesperson further stated, "This is not about cost savings - in fact, we'll have roughly the same number of employees at the end of this fiscal year as we had when we started, and we will do everything we can to help place affected employees in other open roles.
We didn't take this decision lightly, and we will offer that impacted extensive support, including generous severance packages."
In addition to these layoffs, reports of internal job cuts surfaced on social media in July, with former and current Cisco employees sharing their experiences.
Cisco confirmed that these layoffs were part of a restructuring plan disclosed the previous November. However, specific details regarding the number of affected employees and the types of positions impacted were not provided.
Cisco's recent job cuts are part of its ongoing rebalancing effort initiated in November 2022, which includes restructuring its real estate portfolio and reducing its workforce by approximately 5%.
The company emphasizes that this rebalancing is not primarily aimed at cost savings but at prioritizing investments in its transformation to meet customer expectations in the evolving technology landscape.
Despite these workforce changes, Cisco reported a significant increase in annual revenue in August, primarily attributed to higher prices.
However, its outlook for 2024 remains cautious. Cisco's shares have seen an approximately 18% increase year-to-date, outperforming the S&P 500's gain of 16%.