Cisco's transformation from networking hardware vendor to a firm built around software, security and other technologies has been a rough road as the company has suffered through several quarterly financial losses and rounds of job cuts.
Now those cuts are hitting close to home.
On Tuesday Cisco
announced that it would eliminate 310 positions at its San Jose, Calif., headquarters as part of an ongoing restructuring. In a message to Bloomberg, a Cisco spokesman noted:
Cisco regularly evaluates its business and will always make the changes necessary to effectively manage our portfolio and drive the most value for our customers and shareholders. As a result, this can mean realigning some areas so that we can invest in others such as security, data center/cloud and networking.
Currently, Cisco employs about 73,000 people globally. It's not clear if this round of layoffs is part of the 1,100 jobs the company already announced it planned to cut earlier this year, or in addition to that number. (See Cisco Cutting 1,100 More Jobs, Forecasts Revenue Decline.)
During its fiscal fourth-quarter results in August, Cisco CEO Chuck Robbins noted that the company has been making progress with several of its new ventures, including greater emphasis on security, software and technologies such as the Internet of Things and artificial intelligence.
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However, the company has now posted seven consecutive quarters of revenue decline. For its fourth quarter, Cisco reported revenue of $12.1 billion, a 4% year-over-year decline. (See Cisco Revenue Decline Continues Into Q4.)
Cisco is the not the only company handing out pink slips right now.
Ariella, User Rank: Light Sabre 10/9/2017 | 12:52:01 PM
Re: reality check @kq4ym the problem is that openings often don't keep pace with the layoffs. Even if they do, there is some time between losing the job and obtaining the new one, and that can stretch beyond one's severance package amount.
kq4ym, User Rank: Light Sabre 10/9/2017 | 12:43:48 PM
Re: reality check I would suspect that employees laid off may find work as well in firms that will do consulting and outsource work for the big guys, but it certainly is an anxiety producing thought to read that the company had "seven consecutive quarters of revenue declines," and wonder how jobs are going to fare in future quarters.
Ariella, User Rank: Light Sabre 9/27/2017 | 12:41:11 PM
reality check This site really serves as reality check for the overly optimistic view some people paint for IT job prospects. With this kind of downsizing, one can't feel too complacent about job security.
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