MJP –
A new filing with the SEC shows that Cisco is now making billions of dollars while laying off thousands of people.
In a report with the Securities and Exchange Commission on Wednesday, IT giant Cisco Systems revealed the layoff of 7% of its workers.
The San Jose tech behemoth has already laid off hundreds of workers in 2024. A staggering 5,500 workers will be impacted by the new layoffs this year.
Massive in size, Cisco claimed 84,900 employees in July 2023, just months before laying off 4,000 of them in February.
Layoffs are necessary so that Cisco may invest in “important growth opportunities and drive more efficiency in our business,” according to an email from Cisco spokesperson Robyn Blum, which SFGATE obtained.
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A pattern has developed at several tech companies over the last two years, according to the publication, of cutting expenses through layoffs and then investing heavily in costly technology like artificial intelligence.
By investing in artificial intelligence (AI), cloud computing (CC), and cybersecurity (SC), Cisco is “resetting our cost structure,” according to Blum’s writing.
Without going into detail regarding the strategy for workers’ severance pay, she emphasized that the company will provide “full support” to impacted staff.
Revenue for Cisco’s most recent fiscal year was $53.8 billion, a small decrease from the previous year, as the company revealed its profits on Wednesday.
Still, over that same time, the corporation announced a massive profit of $10.3 billion.
