Tech Company Now Announces Thousands of Unexpected Job Cuts

February 13, 2024

Another tech company now announces thousands of unexpected job cuts to restructure its business and focus on other growth areas.

Network giant Cisco plans to restructure its business, including laying off thousands of employees, as it seeks to focus on high-growth areas, according to three sources familiar with the matter, reports CNBC.

The San Jose, California-based company has a total employee count of 84,900 as of 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 led 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.

Big tech firms such as Amazon, Alphabet and Microsoft have also undergone mass layoffs.

Cisco had cut its full-year revenue and profit forecasts in its previous earnings call, indicating that demand for its networking equipment was slowing, per CNBC reports.

It 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.

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Also Read: A US Company Now Declares An Unexpected Bankruptcy

Other Economy News Today

A massive media company is now laying off 800 employees following the announcement of record breaking super bowl ratings.

Paramount Global announced Tuesday it is laying off about 800 employees, or roughly 3% of its workforce, according to a person familiar with the matter, reports CNBC.

Paramount Global, which owns CBS, said Monday that the network set record highs for Super Bowl viewership.

The company is laying off several hundreds of employees, just one day after the company announced CBS had record Super Bowl viewership, Chief Executive Officer Bob Bakish said Tuesday in an internal memo to employees.

Affected workers will be notified Tuesday, Bakish said in the note.

“These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about,” Bakish wrote in the note.

Paramount Global owns a variety of assets including CBS, Paramount Pictures, Pluto TV, Paramount+ and cable networks including Nickelodeon, BET and Comedy Central.

The job cuts come as the media company considers merger and acquisition options.

Paramount Global has held early merger talks with Skydance Media and Warner Bros. Discovery in recent months, CNBC has previously reported.

The media company had warned employees of impending cuts in a Jan. 25 internal memo.

Bakish said at the time that Paramount Global needs to “operate as a leaner company and spend less.”

Paramount+ streaming service continues to lose money each quarter.

The platform lost $238 million in the third quarter.

The company will report its fourth-quarter earnings on Wednesday February 28th.

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Also Read: A New Wave of Unexpected Layoffs Now Hits California

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