New Cisco Systems structure will cost 5,500 jobs

By Sumit Modi

Cisco Systems has announced that it will cut around 5,500 jobs in keeping with its latest restructuring plan.

The technology giant plans to focus more on software, subscription services, and more profitable avenues such as the cloud.

Around seven percent of Cisco’s workforce will be lost in the cuts; the company made 4,000 layoffs in 2013, and another 6,000 in 2014.

On a more positive note, Cisco earned $2.8 billion in profit in the second quarter of this year, compared with $2.3 billion for the same period in 2015. Cuts were not made last year, as a change in CEO was occurring. Now, however, Chuck Robbins has settled into the role and is making big alterations.

“The company is undergoing a massive change, and Robbins clearly has rolled up his sleeve to get it [job cuts] done quickly,” said Rob Enderle, Director of Technology Concultancy The Enderle Group, as reported by Mercury News. “This is the first major phase of Cisco’s change, and we won’t get a good sense for how well it worked until around a year after it’s done.”

Cisco’s shares have risen over 11 percent this year. It is currently earning 63 cents per share, exceeding the Thomson Reuters’s estimate. 

 

Follow @BizReviewUSA and @NellWalkerMG

Read the August issue of Business Review USA & Canada here

Share

Featured Articles

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Q&A: China’s ecommerce innovator Jeff Li, CEO of Shoplazza

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

How hybrid work is revolutionising the physical office

As hybrid work models roll out worldwide, the purpose of the office is changing with collaboration, connection and networking taking centre stage

Trailblazer: Shanique Bonelli-Moore, DEI chief at Clorox

Sustainability

Dean Forbes – the Forterro CEO aiming for the moon

Leadership & Strategy

Why becoming a B Corp is good for business

Sustainability