Thousands of people will lose their jobs again. Cisco continues to run into problems – News

This is the second time this year that Cisco has decided to make large layoffs. Already in February, the company decided to cancel five percent of jobs, which meant that 4,250 people were dismissed.

The next wave of layoffs is expected to be even bigger. Although Cisco has not yet specified how many people will lose their jobs, according to ABC News however, 5,900 people should have been burned. Thus the company deals with unfavorable economic results.

“Unfortunately, we continue to see weak demand from telecommunications companies and cable service providers,” said Charles Robbins, the head of the company, already in the first wave of layoffs.

In the fourth financial quarter, which ended on July 27, Cisco, according to the latest know they reported a profit of $2.16 billion (CZK 49.4 billion). This is 45 percent less than in the same period last year.

So far, there is no further indication that the situation will turn around in the future. Analysts according to Reuters they expect demand for Cisco products and services to remain under significant pressure.

This pressure is caused to a large extent by limiting customers from the telecommunications sector, who in response to the uncertain economic outlook are trying to limit their costs and at the same time ‘ focus on reducing stocks of network equipment that are too large.

Server Layoffs.fyi reports that more than 262,595 jobs were cut in the technology sector last year. It is this site that specifically records information about layoffs in technology companies.

This year the situation is no better, so far 130,482 jobs in 398 technology companies have been cut. For comparison, 164,969 jobs were eliminated in the entire year 2022.

For example, Meta, the company behind the social networks Facebook and Instagram, laid off 11,000 people last fall. Another round of layoffs, in which thousands of people lost their jobs, took place at the beginning of last spring.

Dutch consumer electronics and medical equipment manufacturer Philips announced at the end of January last year that it was to cut another 6,000 jobs over the next two years. At the same time, last October, this company announced layoffs on a large scale, which affected 4,000 people.

Last January, other technology companies also reported big losses – the European software company SAP laid off about three thousand workers, and the American technology giant International Business Machines (IBM) then laid off to 3,900 people.

Xiaomi, Twitter, HP and many others have also decided to suspend their operations.