Cisco Systems, a leading developer of computer networking solutions based in San Jose, California, said it will reduce its workforce by 7 percent, marking its second significant reduction this year. The decision means about 6,000 job losses from its 84,900-person workforce as of July 2023. Earlier this year, Cisco had already cut its workforce by 4,000.
Despite the job cuts, Cisco reported net income of $2.16 billion for the latest quarter, a 45 percent decline from the previous year, with revenue falling 10 percent to $13.64 billion. However, those numbers still beat expectations set by Wall Street, sending Cisco’s stock price up nearly 6 percent in after-hours trading.
Cisco’s move reflects broader trends in the technology industry, where companies are adjusting their strategies and staffing in response to changing market dynamics and technological advances, particularly in artificial intelligence. The ongoing adjustments within these tech giants underscore the volatile nature of the technology market and the need for companies to remain adaptable to sustain growth and stability.