Cisco Staff Brace for a Quiet Month Ahead of Another Round of Job Cuts in 2024

Following the announcement from technological heavyweight Cisco of commencing a second batch of job eliminations this year, staffers have disclosed to TechCrunch their uncertainty about job security, with confirmations lagging nearly a month.

In an earlier report this month by Reuters, it was highlighted that Cisco intended to undertake another series of employee reductions after discharging approximately 4,000 of its workforce back in February. A recent disclosure last week through a SEC filing by Cisco confirmed a workforce reduction of 7%.

Employees have been notified of the impending layoffs, but the company has chosen to delay revealing the identities of those impacted until September 16, as shared by several Cisco employees.

“The atmosphere has deteriorated to the most hostile I’ve experienced, with an overwhelmingly negative sentiment pervading our internal discussions. I’m biding my time until the vesting of my next large [Restricted Stock Unit] before exiting, and I’m aware of several colleagues with similar plans,” shared an anonymous Cisco worker with TechCrunch, highlighting the adverse effects of conducting two significant layoffs within a single year.

Echoing the sentiment, another anonymous staffer voiced that Cisco “ought to halt the annual layoff practice and instead focus on driving innovation and enhancing revenue.”

Cisco has not commented on these matters upon request.

The tech firm, headquartered in San Jose, California, publicized its second sequence of staff cuts amidst reporting earnings that fell short of expectations over the year, with a 45% decline in net income compared to the previous year and about a 10% drop in revenue, amounting to roughly $13.6 billion in its fourth quarter.

Despite the figures, Cisco’s CEO, Chuck Robbins, described the conclusion of fiscal 2024 as “strong.” According to corporate filings, Robbins earned a total compensation of $31.8 million in 2023.