CRN is reporting that networking technology giant Cisco is about to do a massive downsizing exercise in the form of separating 14,000 workers from their jobs:
The heavy cuts, which sources said will range between 9,000 and 14,000 employees worldwide, stem from Cisco’s transition from its hardware roots into a software-centric organization.
“They need different skill sets for the software-defined future than they used to have,” said one source familiar with the situation, who declined to be identified. “In theory the addressable market could be higher and margins richer, but it will take some time to make this transition.”
Cisco declined to comment.
The earliest that this could be confirmed is today as Cisco is due to release its full year numbers later today. It would also be consistent with Cisco trying to re position itself so that it isn’t a hardware company. Stay tuned for what happens after 4PM EST today to see how this unfolds.
UPDATE: CRN got the number wrong. In a statement Cisco said it will lay off up to 5,500 staff, or seven per cent of its worldwide workforce.
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Cisco To Cut 14,000 Employees [UPDATED]
CRN is reporting that networking technology giant Cisco is about to do a massive downsizing exercise in the form of separating 14,000 workers from their jobs:
The heavy cuts, which sources said will range between 9,000 and 14,000 employees worldwide, stem from Cisco’s transition from its hardware roots into a software-centric organization.
“They need different skill sets for the software-defined future than they used to have,” said one source familiar with the situation, who declined to be identified. “In theory the addressable market could be higher and margins richer, but it will take some time to make this transition.”
Cisco declined to comment.
The earliest that this could be confirmed is today as Cisco is due to release its full year numbers later today. It would also be consistent with Cisco trying to re position itself so that it isn’t a hardware company. Stay tuned for what happens after 4PM EST today to see how this unfolds.
UPDATE: CRN got the number wrong. In a statement Cisco said it will lay off up to 5,500 staff, or seven per cent of its worldwide workforce.
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This entry was posted on August 17, 2016 at 9:20 am and is filed under Commentary with tags Cisco. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.