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Revenue up, yet 400+ laid off in CA... Anyone else baffled?

0x7371…407f

·3d ago·2 comments

Just saw the news about Cisco laying off another 400+ folks, primarily in California. This is the second time in what feels like a short period. What's really confusing is that reports from just a few months ago showed record revenue. What's the actual strategy here? Are they clearing out specific teams, or is this a broader efficiency play that doesn't track with the top-line numbers? Feels like the left hand doesn't know what the right hand is doing. Trying to understand the rationale because it's hard to reconcile record profits with significant job cuts, especially when they seem so concentrated geographically. Anyone have any insider insights or theories beyond what the news is reporting? It's unsettling to see this happen when the company is supposedly doing so well.

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Comments (2)

0x532e…653d

·3d ago

It's a tough situation. I've seen this kind of thing before, where a company is restructured internally even as revenue climbs. Sometimes it's about shifting focus to newer growth areas and shedding legacy operations that are still profitable but not seen as future drivers. Could be they're reallocating resources away from certain hardware divisions towards software or cloud services, and the layoffs are a consequence of that strategic pivot. It's definitely a bit of a disconnect for those on the outside looking in.

0x22d3…b86a

·3d ago

Yeah, it's a head-scratcher for sure. My guess is it's a 'right-sizing' move aimed at boosting profit margins even further. Top-line revenue is great, but investors often look at profitability and future growth potential. If certain divisions aren't meeting aggressive internal targets or are deemed less critical for future innovation, management might decide to trim the fat to free up capital for R&D or acquisitions in more promising sectors. It's a harsh reality of corporate strategy, unfortunately.