Cisco says third recent round of layoffs will be its largest as RTP employer shifts focus
On Wednesday, Cisco announced it will lay off around 7% of its global workforce in a move that will impact several thousand employees. The number of affected workers in the Research Triangle, where the company has a major footprint, is not yet known.
But the timing of these job cuts is clearer. Cisco said in a filing it expects to spend $1 billion in severance and other termination benefits from this restructuring, with between $700 million and $800 million of these costs realized in the current fiscal quarter.
“It really is about ensuring in a rapidly moving market that we serve that we’re able to shift resources into the most important areas,” Cisco CEO Chuck Robbins told investors during an earnings call Wednesday.
Two areas Cisco has prioritized are artificial intelligence and cybersecurity.
“To focus on these two broad areas, today we announced a restructuring plan to allow us to both invest in key growth opportunities as well as drive more efficiency in our business,” Robbins said.
In June, the company launched a $1 billion investment fund to back AI-focused startups.
This will be the third, and largest, layoff round the network equipment maker has conducted since late 2022. As of July 2023, Cisco employed 84,900 people overall.
The company opened its Research Triangle Park office in 1995, and has grown into a significant local tech presence. Its local workforce is in the thousands, and the state lists the California-based Cisco as the fourth-largest employer in Durham County.
Cisco did not answer The News & Observer’s request for details on the local impact of the announced cuts. In a statement, the company said “The care of our people is a top priority, and we will provide full support to our employees thoughout this process.”
This story was originally published August 14, 2024 at 5:43 PM.
