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100G Ethernet

Report: Cisco Starts Reorg, Layoffs

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.


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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

nasimson 10/13/2014 | 11:54:49 PM
Re: Elephants can dance @kq4ym: You have made an interesting point. With one in twelve directly affected, how many would be indirectly effected we will see only after some time when the reorganization takes place.
kq4ym 10/13/2014 | 9:29:55 AM
Re: Elephants can dance With one in 12 being affected by the reorganization, would that be a "typical" number is this type of situation? Seems to me the morale of the company can go either way during this period. Downhill, if the fear and anxiety takes over, or upward if there's a sense by employees that change is desperately needed and it's only for the best for survival and better days ahead.
nasimson 10/11/2014 | 12:17:15 AM
Elephants can dance IBM has had a similar reorganisation. The outcome of which was that the elephants can dance. In one of my recent dealings with Cisco it appeared that they were way too expensive, inflexible and a little out of touch with certain smaller and recent but growing segments of market. I hope reorganisation changes that.
MikeP688 10/10/2014 | 3:33:27 PM
Cisco: Can it survive in this "post network" world? Cisco has had quite a run.   They were a client of ours and we could not keep up with fulfilling their on-going needs as we were one of their storage vendors.   How times have indeed changed--it seems as if Cisco did not realize the changes in SDN and the cloud itself--and it is going to be ugly.   I can't imagine the morale state of the folks right now as this tragedy begins to play itself out. 
danielcawrey 10/10/2014 | 1:56:45 PM
Change Cisco has to chaneg with the market in order to stay relevant. For years things like routers and switches made the company a ton of money. But now there is a lot of competition in this space, and now Cisco needs to start preparing for a service-based connected future.

Reorganizations are never good news, but for management it has to be done. 
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