San Jose-based networking and telecommunications giant Cisco is set to reduce its workforce by 5%, impacting at least 4,000 employees. The company disclosed this information in a filing with the Securities and Exchange Commission, coinciding with the release of its quarterly earnings report.
Cisco clarified in the filing that the layoffs are part of a strategic move to “realign the organization and enable further investment in key priority areas.” The majority of these cuts are expected to be implemented within the current quarter.
The company anticipates the cost of severance payments and other termination benefits associated with this workforce reduction to amount to $800 million. The decision reflects Cisco’s commitment to optimizing its operational structure and investing in areas critical to its long-term growth and success.
These adjustments come at a time when businesses globally are navigating a rapidly evolving landscape, emphasizing the need for adaptability and strategic realignment. Cisco’s move aligns with its ongoing efforts to position itself effectively in an ever-changing market.