Cisco Systems, world’s largest maker of networking equipment, will soon lay off about 14,000 employees, which is about 20 per cent of the company’s global workforce.
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“They need different skill sets for the software-defined future than they used to have”, sources told CRN.
San Jose, Calif. -based Cisco is expected to announce the cuts within the next few weeks, as many early retirement package plans have already been offered to employees, said sources.
On the other hand, Cisco, with about 73,000 employees as of April 30, refused to comment on the report.
Cisco Systems, which briefly stalled its ritual annual layoffs last year, resumed it this year doubling the number it is sending home at 14,000, nearly 20% of its total workforce this year. Want to be alerted before Cramer buys or sells CSCO? . Intel in April said that it will cut 11 percent of its global workforce.
Cisco has shown its appetite for software with recent acquisitions, such as Jasper Technologies, which makes programs that let companies connect all manner of electronic devices.
Cisco has announced large job cuts around this time of year, which marks the end of its financial period, several times in the past, with 6,000 redundancies announced in August 2014, 4,000 in August of the preceding year, 1,300 in July 2012 and 6,500 in July 2011.
The London office houses more than 200 employees, and is one of 14 offices that Cisco has in the UK. Analysts project a 2% decline in sales to US$12,6bn. It will be the largest loss of jobs in the company’s 32 year history.
Despite the rocky road for employees, investors seem generally pleased with the company’s performance over the past five years.
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The deal was aimed at expanding Cisco’s data centre portfolio with technology to simplify, automate and manage applications across hybrid cloud.
