Networking giant Cisco is the latest firm to implement mass layoffs. Earlier this week, the company announced that it will be sending home 4,100 employees which accounts for about 5% of its workforce.
According to a report by Silicon Valley Business Journal, the company has decided to take this step in a ‘rebalancing’ act while ‘rightsizing certain businesses.’
Chuck Robbins, the Chairman and CEO of Cisco according to the report did not divulge any detail on laying off employees, saying ‘’..he would be reluctant to go into a lot of detail here until we’re able to talk to them. I would say that what we’re doing is rightsizing certain businesses.”
“You can just assume that we’re going to-we’re not actually there’s nothing that’s a lower priority, but we are rightsizing certain businesses.” the report quotes him.
Mass layoffs have been happening across tech companies over the last few months including Amazon, Meta, Twitter, Netflix and others. In November, Meta laid off 13% of its staff, equivalent to about 11,000 employees. In the US alone, more than 91,000 workers in the tech sector have been laid off in mass job cuts so far in 2022, according to a Crunchbase News tally.
The layoffs come just after the company announced a 6 per cent year-on-year growth in revenue to US$13.6 billion for Q1 of its fiscal 2023, ended 29 Oct. This was the firm’s highest revenue in history.
Cisco in s statement said that decision to layoff staff was not taken lightly” and that “generous severance packages, job placement services and other benefits wherever possible” will be offered to those affected.