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.
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