Cisco announces to axe 5,500 Jobs

Cisco announces to axe 5,500 Jobs

After a drop of 2% in revenue, Cisco Systems announced Wednesday (17 August) to cut about 5,500 jobs, about 7% of the company’s global workforce. These workers will not be a part of the company beginning this summer.

The San Jose-based company’s new decision is a result of its movement from hardware tosoftware-centric business. According toCisco, the job cuts are because big business are shifting to online cloud computing and there’s a steep drop in hardware sector.

Market these days has high demands from Cisco. Customers want the company to make quick and good decision, move with greater speed and make useful innovation, said Cisco in a statement. “Today, we announced a restructuring enabling us to optimize our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security, IoT, collaboration, next generation data center and cloud”, it added.

Cisco has still not revealed in which region of the world this job cut will affect its employees, but it said that the company has decided to reinvest all of the cost savings into its areas that may see a growth in future. It is believed that new decision will cost the company about $700m in termination payments.

With the move, the Internet gear maker has become the second big firm to axe jobs in huge numbers. Before Cisco, Intel in April announced to eliminate about 12,000 jobs.

Before the announcement on Wednesday, there were rumors thatCisco has planned to cut approximately 14,000 jobs. In after hours trading, the company’s shares plunged about 1% to $30.42.

Now, Cisco has planned to focus in software sector. Currently, the company has been investing in new products like data analytics software and cloud-based tools.


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