Cisco Announces Job Cuts Despite Record Profits
Layoffs to Impact 7% of Workforce
San Jose, CA - Network equipment giant Cisco Systems has announced plans to lay off thousands of workers, despite reporting a record annual profit of $103 billion. The cuts will affect approximately 7% of Cisco's global workforce and are part of a larger restructuring effort aimed at improving efficiency.
Profitability Declines Amidst Layoffs
In the company's fiscal fourth quarter that ended on July 27, Cisco reported earnings of $216 billion or 54 cents per share, down from the same period last year. The company attributed the decline to challenges in the supply chain and a slowdown in demand for certain products.
Despite the layoffs, Cisco's CEO Chuck Robbins expressed optimism about the company's long-term prospects. "We are making these tough decisions to ensure that Cisco remains competitive in the rapidly evolving technology landscape," Robbins said in a statement.
The job cuts mark the second major round of layoffs for Cisco this year. In February, the company announced plans to cut 5% of its workforce, or approximately 6,000 employees.
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