Cisco Systems lays off 7% of workforce in restructuring
Company forecasts better-than-expected first-quarter revenue
Shifting focus to high-growth areas
Cisco Systems Inc. (CSCO) said on Wednesday that it would cut about 7% of its workforce as part of a restructuring plan. The company also forecast better-than-expected first-quarter revenue.
Cisco said the layoffs would affect about 5,500 employees. The company has about 79,500 employees worldwide.
Cisco said the restructuring is part of an effort to shift its focus to high-growth areas, such as software and services.
The company's forecast for first-quarter revenue was $9.02 billion to $9.22 billion, compared with analysts' estimates of $9 billion to $9.15 billion.
Cisco shares rose 2.5% in premarket trading.
The company's announcement comes as the technology sector is facing a slowdown in growth. Several other tech companies have recently announced layoffs, including Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL).
Cisco's restructuring is a sign that the company is facing the same challenges as other tech companies. The company is trying to cut costs and shift its focus to high-growth areas in order to remain competitive.
It remains to be seen whether Cisco's restructuring will be successful. The company is facing a number of challenges, including slowing growth, increased competition, and rising costs.
However, Cisco is a well-established company with a strong track record. The company has a good chance of successfully navigating the current challenges and emerging from the restructuring stronger than ever.
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