Cisco to lay off 7% of global workforce

By Ovunc Kutlu

ISTANBUL (AA) – American-based multinational digital communications technology conglomerate Cisco Systems will cut 7% of its global workforce amid a restructuring plan, according to a filing on Wednesday.

Cisco said it estimates pre-tax charges to its financial results of up to $1 billion, consisting of severance and other one-time termination benefits.

"These charges are primarily cash-based," said the filing with the Securities and Exchange Commission.

The company said it expects to recognize approximately $700 million to $800 million of these charges in the first quarter of the 2025 fiscal year, with the remaining amount expected to be recognized during the rest of that fiscal year.

The restructuring plan aims to invest in key growth opportunities and drive more efficiencies in its business, the firm said in the filing.

The move marks the second round of job cuts for the firm after announcing laying off 5% of its workforce in February, or over 4,000 jobs.

The company posted $13.6 billion in revenue in the fourth quarter of the 2024 fiscal year, which was down 10.5% from $15.2 billion recorded in the same period of last year, according to its financial results statement released Wednesday.

Net income, meanwhile, plummeted 45% to $2.2 billion from $4 billion during that period, the results showed.