Cisco to cut 5% of workforce, revenue falls 6%

By Ovunc Kutlu

ISTANBUL (AA) - US-based multinational digital communications technology company Cisco announced Wednesday that it will cut around 5% of its global workforce, or more than 4,000 employees.

"On February 14, 2024, Cisco announced a restructuring plan in order to realign the organization and enable further investment in key priority areas," it said in its financial results statement.

The company, in addition, saw its revenue falling almost 6% to $12.8 billion in the three months ended Jan. 27, down from $13.6 billion in the same period of last year.

Net income decreased 5.4% to $2.63 billion from $2.78 billion during the period.

Dozens of companies in the US technology sector have been cutting jobs since the final quarter of last year as they struggle with lower income and falling advertisement revenue.

Instacart, Snap, DocuSign, Uber, Reddit, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, PayPal and Google's parent company, Alphabet, have laid off workers by the thousands since the last quarter of 2023.

Cisco announced in September that it intends to acquire cybersecurity firm Splunk for approximately $28 billion.

The company's stock price was down 5.7% in after-hours trading on the Nasdaq.