Thursday, 18 August 2016 09:58

Cisco sheds 5500 jobs in shift from switches to software Featured

By

Cisco has always been about the metal – sure, you needed a highly paid rocket scientist to set it up, but once done it was the very fabric of the network.

With software defined networking (SDN) taking a large slice of the traditional network business, Cisco’s almost unassailable position is, well, assailable, and the result is a 7% cut to its 73,700 workforce and charges of up to US$700 million in this quarter to restructuring.

“We need to make some pretty immediate shifts in our portfolio,” Cisco chief executive Chuck Robbins said in an interview with Bloomberg. “We have rapidly shifting customer expectations. The winners in the future will be the ones that understand those dynamics.”

Cisco’s latest earning report looks OK. It grew 3% in revenue to US$48 .7 billion over the year. But its forward projections are for negative growth.

It contained a paragraph on restructuring. "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 centre, and cloud. We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to invest aggressively to focus on our areas of future growth.

"The restructuring will eliminate up to 5500 positions, representing approximately 7%t of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017."


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Ray Shaw

joomla stats

Ray Shaw ray@im.com.au  has a passion for IT ever since building his first computer in 1980. He is a qualified journalist, hosted a consumer IT based radio program on ABC radio for 10 years, has developed world leading software for the events industry and is smart enough to no longer own a retail computer store!

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments