Cisco Systems Announces 5,500 Layoffs

Cisco Systems announced at the closure of Wall Street a new restructuring plan that will affect 5,500 of its employees. Layoffs will thus affect 7% of the global workforce. The technology company specified the reasons for the adjustment during the presentation of its results for the year-end. The leading network services firm scored a profit of $ 10.7 billion, 20% more than a year ago.

The adjustment is less severe than expected, following information that anticipated the elimination of 14,000 jobs. That would have meant a 20% cut in the workforce. In any case, this new restructuring adds to the 6,000 jobs that Cisco Systems already cut in 2014 and to the 4,000 jobs that were announced a year earlier to adapt to the new reality of the world of computing.

Chuck Robbins, its CEO, justifies the adjustment as necessary to reduce the cost base and allocate savings to investments to the development of security systems, data management centers, and the Internet of things. The executive points out that they are the areas of future growth, where he rivals Amazon, Microsoft, Oracle, IBM, Jupiter, or HP. Its revenues stagnated at 49,200 million during the last fiscal year.

Robbins took over the company a year ago. He recently acquired Jasper for $ 1.4 billion and established a business alliance with Apple for the connection of wireless electronic devices. The template set is in line with those announced by Microsoft or HP. The technology sector broke off this year from about 69,000 employees, counting on those announced by Cisco Systems. It is an increase of 71% in one year.

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