Cisco is set to initiate a significant round of layoffs in the coming days as part of its strategy to refocus on growth areas. The USA-based communication technology giant aims to streamline its workforce to adapt to evolving market demands and capitalize on emerging opportunities.

Although Cisco has not disclosed the exact number of employees who will be affected by these impending job cuts, insider sources suggest that the company is finalizing the details and may announce the specifics as early as this week, coinciding with its upcoming earnings call scheduled for February 14. With a global workforce of 84,900 employees in fiscal 2023, the anticipated layoffs are expected to result in a substantial reduction in headcount.

This restructuring initiative follows Cisco's previous announcement in November 2022, during which the company revealed plans to trim approximately 5% of its workforce. The move was accompanied by an allocation of $600 million toward severance and related expenses. Cisco's decision stems from a reported decline in demand for its products, prompting the company to revise its full-year revenue and profit forecasts in its recent earnings call. The subdued performance was attributed to a slowdown in orders, with customers prioritizing the installation and implementation of existing products within their environments.

While Cisco's strategic realignment underscores its efforts to navigate market challenges and pursue growth opportunities, it is emblematic of a broader trend within the tech sector. Since the latter half of 2022, the industry has grappled with workforce reductions and operational recalibrations as companies strive to streamline operations, reduce costs, and enhance profitability in a dynamic business landscape characterized by shifting consumer preferences and economic uncertainties.

The onset of 2024 has ushered in another wave of job cuts across various companies, although not as extensive as those witnessed in previous years. Layoffs.fy reports over 32,000 job terminations across multiple firms, attributed to restructuring initiatives, cost-saving measures, and subdued demand for certain products and services.

Notably, telecom giant Nokia recently announced plans to slash more than 10,000 jobs globally, including 1,400 positions in India, as part of its broader restructuring strategy. Similarly, tech behemoths like Amazon, Alphabet, and Microsoft have implemented workforce reductions across different divisions and geographical regions. Even startups like Snap and eBay have announced layoffs to streamline operations and adapt to evolving market conditions.