Cisco

Cisco to shed 5,500 staff in refocus on IoT, security, cloud

Trade
Image: IDGNS

18 August 2016

Cisco Systems plans to lay off about 7% of its global workforce in a restructuring that will see it further focus on hot IT areas such as the Internet of Things, security, collaboration, next-generation data centres, and the cloud. The move will cost the company around $700 million in redundancy payments to the roughly 5,500 staff who will be out of jobs in the coming months. The layoffs will hit some of Cisco’s smaller and more mature business areas where long-term growth prospects are low, the company said.

“We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to aggressively invest to focus on our areas of future growth,” Cisco said in a statement.

The job losses are lower than those first feared after reports claimed around 14,000 staff would be laid off.

Cisco coupled the announcement with its fourth-quarter earnings report.

It said revenue for the quarter fell 2% to $12.6 billion while net income rose 21% to $2.8 billion.

Excluding Cisco’s service provider video business, which was sold to Technicolor in July, revenue would have been up 2%.

The company’s switching, collaboration, wireless, and security divisions all saw higher sales while revenue dropped in the NGN routing and data centre products divisions.

IDG News Service

Read More:


Back to Top ↑

TechCentral.ie