In a dramatic move, Cisco has announced its second round of layoffs for 2024, impacting approximately 5,600 employees, or 7% of its workforce. This follows an earlier reduction in February, which saw around 4,000 employees let go.
The company disclosed these changes in August but has faced criticism for delaying communication with affected employees until mid-September. Reports from within the company suggest a deteriorating workplace environment, with some describing it as increasingly toxic.
The recent layoffs also extend to Talos Security, Cisco’s threat intelligence and security research division. Despite these cuts, Cisco remains optimistic about its financial outlook. The company recently reported nearly $54 billion in annual revenue for 2024, marking its second strongest year on record.
Cisco’s CEO Chuck Robbins earned nearly $32 million in total compensation for 2023, but it remains unclear whether there will be adjustments to executive pay in light of the layoffs.
As Cisco continues to navigate these turbulent times, the company's focus is on investing in growth opportunities and enhancing operational efficiency, even as it makes these tough personnel decisions.
