Menu
Cisco to shed 5,500 staff in refocus on IoT, security, and cloud

Cisco to shed 5,500 staff in refocus on IoT, security, and cloud

The move will cost $700 million but is ultimately hoped to increase profits

Cisco Systems plans to lay off about 7 percent of its global workforce in a restructuring that will see it further focus on hot IT areas such as the internet of things, security, collaboration, next-generation data centers, and the cloud.

The move will cost the company around $700 million in redundancy payments to the roughly 5,500 staff who will be out of jobs in the coming months.

The layoffs will hit some of Cisco's smaller and more mature business areas where long-term growth prospects are low, the company said.

"We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to aggressively invest to focus on our areas of future growth," Cisco said in a statement.

The job losses are lower than those first feared after a CRN report on Tuesday claimed around 14,000 staff would be laid off.

Cisco coupled the announcement with its fourth-quarter earnings report.

It said revenue for the quarter fell 2 percent to $12.6 billion while net income rose 21 percent to $2.8 billion.

Excluding Cisco's service provider video business, which was sold to Technicolor in July, revenue would have been up 2 percent.

The company's switching, collaboration, wireless, and security divisions all saw higher sales while revenue dropped in the NGN routing and data center products divisions.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
EDGE 2019: Thought leaders share how to build a channel of the future

EDGE 2019: Thought leaders share how to build a channel of the future

Day 2 of EDGE was opened by in-depth research from TRA's Tim Dillon, which outlined the partner view on the channel's future. The following day saw Forrester's Jay McBain and Odgers Berndtson's Tim Sleep conclude the keynote line-up, while HPE and Cisco rounded off the thought leadership.

EDGE 2019: Thought leaders share how to build a channel of the future
Show Comments