Cisco Systems to lay off 14,000 employees, says report

Cisco Systems, which employs about 300 people in Ireland, is laying off about 14,000 employees, representing nearly 20 per cent of the network equipment maker's global workforce, technology news site CRN reported, citing sources close to the company.

California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organisation.

Cisco, which had more than 70,000 employees as of April 30th, declined to comment.

Software-defined future

Cisco increasingly requires “different skill sets” for the “software-defined future” than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation.

Cisco has been investing in new products such as data analytics software and cloud-based tools for data centres, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers.

Apart from Cisco, two other big software companies, Microsoft and HP, have also announced job cuts this year.

Microsoft said in July that it would lay off about 2,850 jobs over the next 12 months, taking its total planned job cuts to up to 4,700, or about 4 per cent of its workforce.

HP said in February it would cut about 3,000 jobs by the end of fiscal 2016. – (Reuters)