Tech giant Cisco recently announced plans for a second round of layoffs, leaving employees in a state of uncertainty. The company had previously let go of around 4,000 workers in February, and now, they have confirmed that they will be cutting 7% of their workforce.
However, what’s particularly concerning for employees is that Cisco has chosen not to inform affected workers about the layoffs until September 16th, which is close to a month away. This lack of transparency and delayed communication has left employees feeling frustrated and anxious.
According to multiple Cisco employees, the work environment has become incredibly toxic, with morale being at an all-time low. Many employees are contemplating leaving the company as soon as they receive their next big Restricted Stock Unit (RSU) vest. The repeated layoffs within the same calendar year have created a sense of instability and dissatisfaction among the workforce.
One employee stated, “Cisco needs to stop layoffs every year and focus on innovation and revenue growth.” This sentiment reflects the frustration of employees who believe that the company should prioritize finding ways to increase revenue and foster innovation rather than resorting to layoffs.
The decision to implement this second round of layoffs comes as Cisco reported lower than expected earnings during the year. Their net income during the quarter was down by 45% compared to the previous year, and revenue saw a decline of approximately 10%, amounting to around $13.6 billion during the fourth quarter.
Despite these challenges, the company’s CEO, Chuck Robbins, remains optimistic. He stated that Cisco had a “strong close to fiscal 2024.” However, it’s worth noting that Robbins himself received a total executive compensation of $31.8 million in 2023, according to the company’s filings. This stark contrast between executive compensation and employee layoffs further adds to the discontent among workers.
In conclusion, Cisco’s announcement of a second round of layoffs has left employees in a state of uncertainty and frustration. The delayed communication and lack of transparency have contributed to a toxic work environment. Employees are calling for a shift in focus towards innovation and revenue growth rather than recurrent layoffs. The company’s lower than expected earnings and declining revenue have raised concerns about its financial performance. As the workforce anxiously awaits more information, it remains to be seen how Cisco plans to navigate these challenges and address employee concerns moving forward.
