Cisco has reportedly started its planned reorganization, which will have ramifications across its 75,000-strong workforce.
Business Insider reports that a massive shakeup of the networking giant's router and switching business is ongoing, with two big teams being organized under hardware and software as the end result. BI says top-level "general manager" positions are being targeted as part of the changes.
Light Reading asked Cisco for a comment on the reorganization. Here's what the company sent us:
- As announced on our August 13 earnings call, Cisco is conducting a limited restructuring across several segments of our business that will impact up to 6,000 roles or up to 8 percent of our global workforce. Technology disruption has never moved more quickly, requiring all companies to adapt and accelerate through change. We are taking action now to build for the future of cloud, security, virtualization, analytics, data center, IoE and collaboration. We will continue to invest in growth, innovation, and talent, while managing costs and improving efficiencies across our business. We are continuing to hire, especially in the areas that help our customers solve their biggest business problems. Of Cisco’s approximately 25,000 employees in the development organization, many -- but not all -- have new reporting lines as part of our overall effort to align our business to priority areas.
The statement appears to support the rumors of possible top-line changes with its mention of "new reporting lines."
There have also been rumors that CEO John Chambers will retire this fall. (See Is Cisco's Chambers Retiring in the Fall?.)
— Dan Jones, Mobile Editor, Light Reading