The mass layoffs announced Wednesday in conjunction with Cisco’s latest quarterly results represent about 5% of its worldwide workforce of 84,900. The purge follows Cisco’s late 2022 cutbacks that shed 5,000 workers and ahead of its $28 billion acquisition of Splunk, a deal that management now expects to complete by April 30. Cisco — a company best known for making much of the technology that connects the internet — expects its reorganization to cost an additional $800 million.
The double whammy of two big layoffs in two years has been a phenomenon affecting other prominent technology companies, such as Google and Amazon, both of which have trimmed their once-steadily growing payrolls multiple times since the end of 2022.
The reductions are being made even though most of the companies are still big moneymakers. Cisco, which is based in San Jose, California, earned $2.6 billion, or 65 cents per share, during its fiscal second quarter covering October-January, a 5% decrease from the same time during the previous year. Revenue for the period fell 6% from the prior year to $12.8 billion.
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