Cisco Systems may trim headcount by 14,000

San Jose: Cisco Systems Inc may lay off 20 percent of it workforce globally. Sources close to the company reveal that about 14,000 employees are on the verge of losing jobs during the transition phase of the company from hardware focus to software-centric organization. Cisco had over 70,000 employees as of April 30, 2016.

According to a report by technology news site CRN, the California-based Cisco is poised to announce job cuts very soon. However, Cisco declined to comment.
Recently, the other tech giants have announced job cuts in the wake of adverse conditions in the personal computer (PC) segment. Microsoft Corp, HP Inc and Intel Corp have announced plans to trim the headcount.

Microsoft Corp recorded one of the largest layoffs in the global technology space in July 2014 after announcing job cuts to the tune of 18,000. HP Inc in September 2015 announced about 33,300 job cuts over three years. Intel in April said that it would slash up to 12,000 jobs globally or 11 percent of its workforce.

Telecom and enterprises slashing their spending on network switches and routers. To overcome this problem, Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers. CRN further reports that Cisco has already offered many early retirement package plans to its employees.

Cisco is focusing on becoming a software-centric organization and this requires ‘different skill sets’ for the ‘software-defined future.’

Cisco is feeling the heat as pressure on topline increasing. Telecom and enterprises slashing their spending on network switches and routers. To overcome this problem, Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers.
CRN further reports that Cisco has already offered many early retirement package plans to its employees.

Cisco shares were trading at $31.12 on the Nasdaq, 15 percent rise this year so far. The stock recorded a 10.5 percent increase in the Dow Jones U.S. Technology Hardware & Equipment index.