The American company reported a net income of $2.6bn for Q2 2024, a 5% decrease compared to $2.8bn for the same quarter of the previous year and its revenue was $12.8bn, a 6% decrease compared to $13.6bn in Q2 2023
Cisco Systems to lay off nearly 5% of the company’s workforce. (Credit: Cisco Systems Inc.)
US-based Cisco Systems has announced that it will lay off nearly 5% of the company’s workforce in a move to restructure the organisation and allow further investment in key priority areas.
According to various reports, the mass job cuts are expected to more than 4,000 employees of the American digital communications technology conglomerate.
The announcement has come as part of Cisco Systems’ financial results for the second quarter of 2024 (Q2 2024).
According to the technology company, the layoff will realise pre-tax charges to its GAAP financial results of about $800m, including severance, one-time termination benefits and other costs.
Cisco Systems aims to execute the majority of the actions in Q3 2024 and recognise nearly $500m of the charges.
The company reported a net income of $2.6bn for Q2 2024, a 5% decrease compared to $2.8bn for the same quarter of the previous year.
Cisco’s diluted earnings per share in the reported quarter were $0.65 compared to $0.67 in Q2 2023.
Its revenue was $12.8bn in Q2 2024, a 6% decrease compared to $13.6bn in Q2 2023.
The American technology company expects to achieve revenue between $12.1bn-$12.3bn for the third quarter of 2024.
Cisco Systems chair and CEO Chuck Robbins said: “We delivered a solid second quarter with strong operating leverage and capital returns.
“We continue to align our investments to future growth opportunities. Our innovation sits at the centre of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organisations.”
In December last year, Cisco Systems disclosed its intention to acquire Isovalent, a cloud-native networking and security company based on open-source technologies, to improve its capabilities in secure networking across public clouds.