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The
San Jose, California-based company has a total employee count of
84,900 as of fiscal 2023, according to its website.
The company is still deciding on the total number of employees
to be affected by the layoffs, one person said.
An announcement could come as early as next week, as the company
prepares for its earnings call on Feb. 14.
In November 2022, Cisco announced during an earnings call a
restructuring that impacted roughly 5% of its workforce which
lead to $600 million in severance and other charges.
Cisco declined to comment.
The move would come at a time when tech companies, including
telecom makers Nokia and Ericsson, cut thousands of jobs last
year in a bid to lower costs.
Several big tech firms such as Amazon, Alphabet and Microsoft
have implemented layoffs in recent weeks.
Cisco had cut its full-year revenue and profit forecasts in its
previous earnings call, in a sign that demand for its networking
equipment was slowing.
It had blamed the weakness on a slowdown in orders in the first
quarter, saying "customers are currently focused on installing
and implementing products in their environments."
The company has in recent years grappled with supply chain
issues and a post-pandemic slowdown in demand, which has
hastened its push into software offerings like cybersecurity.
(Reporting by Utkarsh Shetti in Bengaluru and Supantha Mukherjee
in Stockholm; Editing by Chris Reese)
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