Report: Cisco may cut 14,000 jobs, largest in its history
Technology giant Cisco could be laying off 14,000 employees, nearly 20 per cent of its global workforce, technology news website CRN reported on Wednesday, citing “multiple sources” close to the company.
The American company had announced on Wednesday that it plans to cut 5,500 jobs, nearly seven per cent of its workforce, in a massive restructuring plan, after reporting a two per cent drop in revenue in its latest financial results.
“Today’s market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we’ve seen in our history. Today, we announced a restructuring enabling us to optimise 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 centres and cloud. 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,” a Cisco statement read.
“The restructuring will eliminate 5,500 positions, representing approximately seven per cent of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017,” it added.
While Cisco’s statement only mentioned 5,500 lay-offs, the CRN report estimates that the overall number of job cuts may lie between 9,000 and 14,000, which is a result of the firm’s transformation into a “software-centric organisation.”
If gone through with, the cut would be the largest in the company’s 32-year history.
It is still unclear how many of these cuts would happen in the Middle East.