Cisco layoffs: Long delay in informing affected employees raises concerns

Last updated on September 20th, 2024 at 07:29 am

Cisco has started laying off thousands of employees. It comes about a month after the tech giant announced the second round of job cuts in 2024. The company confirmed the layoffs last month but reportedly delayed informing affected employees until September 16.

TechCrunch noted in a report that the latest job cuts have also affected Talos Security, the company’s threat intelligence and security research unit. Last month, Cisco announced its plan to reduce its headcount by 7% or around 5,600 employees.

The tech company has not yet given any reason for the month-long delay in notifying the affected employees. The first round of job cuts in February resulted in nearly 4,000 employees getting laid off, a move that made global headlines.

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Last month, Cisco announced a restructuring plan to enable the company to invest in performance and efficiency. It plans to combine its netorking, security and collaboration departments into a single organisation, according to media reports.

Despite the sizeable job cuts, Chief Executive Officer Chuck Robbins expressed optimism about rebounding demand for Cisco’s equipment. Inventory digestion is complete and the company is currently returning to a more normalised demand environment, he added.

The second round of Cisco layoffs, nonetheless, raise concerns as its full-year earnings report has just been released, highlighting 2024 as the “second strongest year on record”. Robbins’ total executive compensation for last year is apparently close to $32 million.