Cisco Systems is on the move to reduce its cost and increase profits. This appears to be good for the company but a bad part for the employees that will be affected.
The company is reported to lay off its global workforce by 2%, which means 1,300 positions will be removed.
According to Karen Tillman, spokesperson of Cisco, said, “part of our plan to drive simplicity, speed of decisions and agility across Cisco,” “We routinely review our business to determine where we need to align investment based on growth opportunities.” she added.
This lay off announcement made by the company came after a year when they also announced a plan of cutting 14% of the workforce making it 11,500 employees laid off and 15% in the VP level.
Cisco also moved into new markets in an effort to increase profits but somehow the company lost market share, though they are still leading in the IP routing market. With regards to Ethernet business, they are still challenged with competing companies such as Huawei and HP.
However, the CEO of Cisco, John Chambers, has the high hopes for positive changes with the actions that they are taking now. In a note he said, “In a cautious IT spending environment, we continue to outperform our competitors.”