Cisco Systems to lay off about 14,000 employees
…readies shift to software biz from hardware
Cisco Systems, the largest networking equipment company in the world, will lay off 14,000 of its over 73,000 employees, according to a new report. San Jose, California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organisation.
The company is expected to announce the news in the coming weeks and has reportedly already offered many employees early retirement packages.
Up until Tuesday’s close of $31.12 on the Nasdaq, the company’s stock had risen about 15 percent this year, compared with a 10.5 percent increase in the Dow Jones US Technology Hardware & Equipment index.
Cisco increasingly requires “different skill sets” for the “software-defined future” than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation.
Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers.