Cisco's dot-com cutbacks (2001)
After Cisco's explosive late-1990s growth, demand collapsed in early 2001. Cisco cut about 8,500 jobs, roughly 18% of its workforce, its first major layoff ever, and took a $2.2 billion inventory write-down.
Cisco survived and returned to growth by mid-decade.
Became the reference case for a tech giant slimming from its headquarters down when growth stalls.
Offers a contrast: Cisco cut because demand collapsed, while PayPal cuts while profitable. That difference makes the AI-driven layoff unusual; it is a strategic cost shift, not a downturn response.
