Not content with just decimating its staff, the network gear maker Cisco is laying off about 14,000 employees, representing nearly 20 percent of the workforce in a move that even the Roman Emporer Caligula would think was a bit mean.
The cuts are still secret but the news has found its way to the press. The announcement is expected in the next few weeks. This is all because Cisco is moving from a hardware to a software based outfit.
Apart from Cisco, the other tech giants, which have announced job cuts in the face of PC industry decline in recent years, are Microsoft, HP and Intel. In fact the winner so far has been Vole which liberated 18,000 jobs in 2014. HP Inc said in September 2015 that it expected to cut about 33,300 jobs over three years. Intel said in April that it would slash up to 12,000 jobs globally, or 11 percent of its workforce.
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.
Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers. The company has already offered many early retirement package plans to Cisco’s employees..