New Delhi: Tech giant Cisco has announced another round of layoffs, affecting about 5,600 employees which accounts for around 7 per cent of its global workforce. This follows a similar downsizing in February, when Cisco laid off over 4,000 employees earlier this year.
Cisco, in August 2024 hinted at plans to cut staff. However, the company did not specify which individuals or departments would be affected. This lack of clarity made the recent wave of layoffs surprising for many.
Employees were only informed in mid-September, leading to nearly a month of uncertainty. This delay has caused growing discontent among the workforce, with many feeling they were kept in the dark throughout the process.
A report from TechCrunch reveals that the work environment at Cisco has been worsening. SEveral employees have described the atmosphere as “toxic.” citing poor communication as a major issue. One of the employees mentioned that this was the “worst work environment” they had ever experienced at Cisco. The report also indicates that the layoffs have impacted Talos Security, Cisco’s threat intelligence and security research division.
Cisco in a statement from August explained that its second round of layoffs this year would allow the company to “invest in key growth opportunities and drive more efficiencies.” Despite the job cuts, the company reported that 2024 was its “second strongest year on record,” with an annual revenue of approximately 54 billion dollars. This financial report was released on the same day as the layoff announcement. Company records also show that CEO Chuck Robbins received a compensation of around 32 million dollars in 2023.