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.
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.
The company has also seen interest in its new switches as these are part of its "network intuitive" plan. (See Cisco's 'Network Intuitive': A Risky Transition.)
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.
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