Once again, the crisis in the tech sector hits, this time with Cisco, the technology and networking giant, which has laid off thousands of employees this year.

In August, the company announced a 7% reduction in its workforce, equivalent to about 5,600 employees. This follows a previous layoff in February, when the company cut around 4,000 jobs.

According to TechCrunch, Cisco employees did not disclose who was affected by the layoffs until September 16. Cisco offered no explanation for the one-month delay in notifying the impacted staff. A worker told the magazine that the work environment at Cisco had become the “most toxic” they had ever experienced.

One of the departments hit by the cuts was Talos Security, the company’s threat intelligence and security research division.

In its August statement, Cisco mentioned that this second layoff would allow the company to “invest in key growth opportunities and drive greater efficiencies.” On the same day, the company released its latest annual earnings report, in which it stated that 2024 was its “second strongest year on record,” citing nearly $54 billion in annual revenue.

Cisco’s CEO, Chuck Robbins, received a total executive compensation of around $32 million in 2023, according to company filings.

A Cisco spokesperson did not respond to inquiries about whether the company’s executive leadership team plans to reduce their compensation packages following the layoffs.

By: Nestor Castillo, ForAllTechNews Director