Cisco

Cisco last month announced a restructuring plan that will include layoffs in its current quarter. According to the Silicon Valley Business Journal, the layoffs have started.

Cisco’s restructuring plans cast a shadow on the strong gains the company reported in cybersecurity and software in its latest quarterly earnings. It drove $13.6 billion in revenue in the first quarter of its fiscal year 2023 – its highest quarterly revenue ever reported. That represents a 6% year-over-year increase.

The restructuring plan will “enable further investment in key priority areas,” Cisco said. That restructuring will include layoffs, as Cisco revealed that it plans to incur pre-tax charges for expenses that include severance. Cisco executives did not give a number for the number of employees impacted.

The company stated that it will execute the plan in the second quarter of fiscal year 2023, which started Nov. 1, and spend about $600 million in severance and other termination benefits as well as real estate-related charges. Approximately $300 million of the charges will occur in the second quarter of fiscal year 2023, and another $200 million in the second half of the fiscal year.