Cisco Systems has announced plans to cut 5% of its global workforce, translating to over 4,000 job losses. The networking equipment giant has also revised its annual revenue target, citing the tough economic environment that has prompted widespread layoffs in the tech sector.
Cisco is strategically focusing on artificial intelligence and forming a partnership with Nvidia to stimulate growth. This is being seen as the reason behind redundancy of 5% of its global workforce. Company claims, with an employee count of 85,000, is undergoing layoffs and a broader restructuring effort to concentrate on high-growth areas.
But Cisco isn't the only one. The networking equipment giant has followed suit to hundreds of other US and Canada firms which strategically moved towards AI integration in its operations to announce massive layoffs since the beginning of 2024. While job cut announcements in the U.S. more than doubled month-on-month to 82,307 in January, they were down 20% from a year earlier, according to a report by outplacement firm Challenger, Gray & Christmas earlier in February.
On a broader scale, the technology sector in the United States is witnessing a wave of job cuts. In 2024, thousands of jobs have already been eliminated across various tech companies. Cisco's decision adds to the growing list of firms implementing workforce reductions. The technology industry, which experienced the highest number of layoffs in 2023, has already seen 34,000 job cuts across 141 firms in the current year, according to Layoffs.fyi.
{{/usCountry}}On a broader scale, the technology sector in the United States is witnessing a wave of job cuts. In 2024, thousands of jobs have already been eliminated across various tech companies. Cisco's decision adds to the growing list of firms implementing workforce reductions. The technology industry, which experienced the highest number of layoffs in 2023, has already seen 34,000 job cuts across 141 firms in the current year, according to Layoffs.fyi.
{{/usCountry}}As companies across sectors in the U.S. and Canada grapple with economic challenges, the job cut announcements signal potential ongoing layoffs in 2024 as organizations strive to control costs.
List of companies that have announced layoffs -
Technology Sector Job Loss Snapshot
Amazon:
Amazon Prime unit: Less than 5% of employees affected
Amazon Audible: 5% job cuts
Amazon Streaming and studio operations: Several hundred layoffs
Twitch: 35% reduction
Amazon Pharmacy: Few hundred job cuts
Alphabet
X Lab (new technology development): Dozens of layoffs
Advertising sales team: Hundreds affected
Hardware team (Pixel, Nest, Fitbit): Hundreds of job cuts
Augmented reality team: Majority of layoffs
Microsoft: Gaming divisions (Activision Blizzard and Xbox): Approximately 1,900 job cuts
IBM: Layoffs planned in 2024; focus on hiring for AI-centered roles
eBay: About 1,000 roles cut, representing around 9% of the workforce
Unity Software: Workforce reduction of about 25%, totaling 1,800 jobs
DocuSign: Workforce reduction by about 6%, with a majority in sales and marketing (400 employees)
Snap: Approximately 528 jobs cut, representing 10% of the global workforce
Salesforce: Roughly 700 employees laid off, approximately 1% of the global workforce
Aurora Innovation: 3% of the workforce laid off
BlackBerry: Additional layoffs planned, following about 200 job cuts in the prior quarter
SiriusXM: Workforce reduction of about 3%, impacting approximately 160 roles
Media Sector Job Loss Snapshot
Walt Disney's Pixar Animation Studios: Job cuts following completion of some shows
Sky (Comcast-owned): About 1,000 job cuts across businesses
Los Angeles Times: 94 journalists to be laid off
Paramount Global: Unspecified number of layoffs
Business Insider: Around 8% staff layoffs
Bell Canada: 4,800 job cuts
Financial Services Sector Job Loss Snapshot
PayPal Holdings: Approximately 2,500 job cuts, representing 9% of the global workforce
Block Inc: Unspecified jobs cut
Citigroup: Planning to reduce headcount by 20,000 people over the next two years
Nasdaq: Hundreds of job cuts as it integrates Adenza into its business
BlackRock: About 3% workforce reduction, expecting larger headcount by end-2024
Consumer and Retail Sector Job Loss Snapshot
Estee Lauder: 3% to 5% of the global workforce to be cut
Wayfair: 1,650 employees laid off, around 13% of the workforce
Macy's: 2,350 job cuts, closing five stores
Levi Strauss & Co: Planning to slash 10%-15% of global corporate jobs
Hershey's: Restructuring impact on less than 5% of the workforce
Health Sector Job Loss Snapshot
Novavax: Cutting about 12% of the workforce
Manufacturing Sector Job Loss Snapshot
Lockheed Martin: Planning to cut 1% of its jobs
United Parcel Service: 12,000 jobs to be cut for cost-cutting
Piedmont Lithium: 27% of the workforce cut in a cost-cutting plan