Huge layoffs at Cisco Systems were confirmed on Wednesday. The company aims to reduce roughly 7% of its global staff through these layoffs, which could cost up to $1 billion.

The massive networking company situated in San Jose, California, stated in a regulatory filing that the majority of the expenses will go toward severance, one-time termination payments, and other expenses. Cisco has allocated $700 million to $800 million for its fiscal year 2025's first quarter. The fiscal year 2024 concluded on July 27.

It was announced earlier this week that Cisco planned to fire thousands of workers.

Cisco also released its fourth-quarter financial results for the 2024 fiscal year on Wednesday. Revenue for the vendor was $13.6 billion, down 10% from the previous year but still exceeding the upper end of the vendor's target range. For the fourth quarter, Splunk's total revenue was $960 million.

Cisco's revenue for the fiscal year was $53.8 billion, a 6% decrease from the previous year.  For the fiscal year, Splunk had a total revenue of $1.4 billion. In Wednesday's after-hours trade, Cisco's shares increased by more than 5% to $48.11.

As of July 2023, Cisco, one of CRN's 2024 Channel Chiefs, employed over 85,000 people. After laying off roughly 4,000 workers in February, Cisco should have had about 80,000 workers; therefore, another 7% reduction might impact nearly 5,000 workers. Following the cut, there should be about 75,000 workers worldwide.

In the age of AI, the vendor is not the only one reducing manpower. Additionally, Dell Technologies announced that, as part of its reorganization, it will be terminating staff.