U.S. companies’ waning job cuts are showing signs of a resurgence in the second half of the year due to poor performance.
Reuters reported on the 9th local time that Cisco Systems, a U.S. network equipment company, is pushing for a second restructuring of its workforce this year.
The job cuts are the second of the year, following a reduction of 4,000 in February, and the exact size is unknown.
As of the end of July last year, Cisco had 85,000 employees.
“Cisco is shifting its focus to fast-growing businesses like cybersecurity and artificial intelligence (AI),” Reuters said of the second restructuring.
Cisco has been underperforming, with sales down 12.8% from a year ago between February and April.
Cisco rose to the top of the market capitalization in March 2000 during the dot-com bubble process, and its stock price plunged by 80% due to the collapse of the bubble the following year, so it is being summoned again as the AI bubble has recently been raised.
Multinational automaker Stellantis said it plans to cut up to 2,450 U.S. factory workers that day. Stellantis said it comes after production of older pickup trucks was halted at its Michigan plant at the end of the year.
U.S. chipmaker Intel announced a major restructuring plan on the 1st to cut costs by $10 billion due to slowing earnings. Intel said it plans to cut 15% of its employees.
U.S. media company Paramount Global (Paramount) also announced on the 8th that it is reducing its workforce on a large scale. Paramount’s job cuts are 15% of its workforce in the United States, with about 2,000 fewer jobs. The company explained that the job cuts were made to prepare for a merger with Skydance Media.
EJ SONG
US ASIA JOURNAL
