Cisco, the networking, cloud, and cybersecurity solutions provider, will cut 5% of its global networks as the major tech reshuffle continues to plague workers in the undulating industry.

Revealed in an investor call on 14 February, CEO Chuck Robbins blamed the layoffs on macroeconomic challenges, saying that the company is aiming to be more cautious in the expectations based on customer feedback and uncertainty about deals.

A downturn in purchases from Cisco, especially among telecommunications providers, was cited as a major reason for the layoffs.

“This industry has seen significant pressure and they’re adjusting deployment phasing, which is weighing on our business outlook,” CEO Chuck Robbins said, as reported by ITPro. “Given these factors, we are adjusting our expenses and investment to reflect the current environment.”

Despite the layoffs, Robbins credited Cisco with a solid second quarter performance.

“We continue to align our investments to future growth opportunities,” Robbins said in their Q2 report. “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.”

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CFO Scott Herren added: “We are making good progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns, as evidenced by our increased dividend.”

While confidence may appear high, CISCO’s revenue was down 6% year-on-year, but their revenue in security, collaboration, and observability did grow.

CISCO’s decision to layoff staff points to the continued trend of major tech companies having their employees pay the price for an uncertain economic future.