Cisco, one of the most profitable companies in the technology arena is having to face some tough times and is looking at taking some drastic measures.
Difficult times ahead...
According to Fiercetelecom, Cisco employs over 73,000 people around the world and is going to cut thousands of jobs in a move which will save them $1 billion. Cisco CEO John Chambers has accepted that the company has been trying to compete in too many markets and has agreed to streamline and simplify the company.
In a statement, Mr. Chambers said, “We are moving quickly to fix what is broken.We've had to make big changes before and each time we have made these changes, we've emerged even stronger. We are embarking on a course that will address our challenges while building on our foundational strengths”.
The company has already cut 550 jobs and has also ceased production of its Flip video camera. It is also providing early retirement to its employees. The jobs cuts were no surprise as Cisco has had a rather poor third quarter, with profits going down by 18%. This is not the first company to have jobs cuts in the recent past, with both Nokia and Panasonic having announced layoffs around the world.