Dodo Finance reports Ciscos decision to cut over 4,000 jobs, accounting for 5% of its global workforce

Title: Cisco Announces Workforce Reduction Amidst Tech Industry’s Job Cut Surge

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Cisco, the global technology conglomerate, has declared its intention to slash approximately 5% of its workforce, resulting in the elimination of roughly 4,250 jobs. This decision comes as several tech companies continue downsizing following the market downturn that occurred two years ago.

The beginning of the year saw a significant surge in job cuts among tech giants such as Alphabet, Amazon, Microsoft, SAP, eBay, Unity, and Discord. Consequently, nearly 35,000 job losses were recorded across 144 tech companies, heightening concerns in the industry.

Despite reporting strong fiscal second-quarter results, Cisco provided a relatively conservative outlook for the future. The company’s revenue experienced a decline of 6% year over year during the quarter, and net income also fell. This underperformance may have contributed to the decision to reduce the workforce.

Additionally, Cisco is on track to finalize its $28 billion acquisition of Splunk either in late Q1 or early Q2, further influencing its strategic decisions. The revenue generated from networking products fell slightly below analyst expectations.

Moreover, Cisco’s guidance for the fiscal third quarter also fell below analyst predictions, which the company attributes to caution and scrutiny of deals in the current uncertain macro environment. Demand among telecommunications and cable service provider clients remained sluggish, exacerbating the company’s concerns.

Despite the challenging circumstances, Cisco has decided to increase its dividend by one penny to 40 cents per share, affirming its commitment to shareholders. The decision to reward investors amidst a period of workforce reduction suggests that the company aims to maintain some level of stability and optimism among its stakeholders.

As the tech industry grapples with ongoing challenges and uncertainties, the announcement of Cisco’s workforce reduction adds to the growing job cut trend. However, the company’s determination to navigate these difficult times by acquiring Splunk and its commitment to shareholders through increased dividends illustrates its resiliency in the face of adversity.

Disclaimer: The information provided in this article is based on the available facts at the time of writing and may be subject to change as further updates are released.