‘Aligning to future growth’: Cisco to cut 4,000+ jobs in Q2 restructuring

Cisco is laying off approximately five per cent of its total workforce – affecting more than 4,000 jobs.

What’s happening at Cisco?

In its Q2 2024 earnings release, the tech giant said the job cuts will help “realign the organization and enable further investment in key priority areas.”

“We continue to align our investments to future growth opportunities,” CEO Chuck Robbins said in the release.

“Our innovation sits at the centre of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”

Cisco is anticipating pre-tax restructuring charges of approximately US$800 million — consisting of severance and other one-time termination benefits.

“[We expect] to take the majority of these actions in the third quarter of fiscal 2024 and recognize approximately US$500 million of these charges.”

The company reportedly employs a total workforce of approximately 85,000 people.

SEE ALSO
• Cisco cutting 5% of staff amid $600M restructuring
• Cisco acquiring cybersecurity firm Splunk for $28B: Employee rights

Cisco layoffs in Canada

It remains unclear if any Canadian employees are affected by the latest round of job cuts at Cisco.

According to the company’s LinkedIn page, it has more than 2,300 workers in the country.

Termination agreements for Cisco employees

In Canada, non-unionized employees at Cisco are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Rights to severance during mass layoffs

Major tech layoffs continue

The job cuts at Cisco come amid a flurry of tech sector layoffs in 2024.

Big names, including Mozilla, Instacart, BlackBerry, Grammarly, Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, Microsoft, eBay, and Wayfair, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Boundless Learning laying off 15% across company: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.