Cisco Systems to retrench 14,000 employees; co readies shift to software biz from hardware
California-based Cisco is expected to announce the cuts within the next few weeks
Cisco Systems is laying off about 14,000 employees, representing nearly 20 percent of the network equipment maker's global workforce, technology news site CRN reported, citing sources close to the company.
San Jose, 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 organization.
Cisco, which had more than 70,000 employees as of 30 April, declined to comment.
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 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, according to CRN.
Up until Tuesday's close of $31.12 on the Nasdaq, the company's stock had risen about 15 percent this year, compared with a 10.5 percent increase in the Dow Jones US Technology Hardware & Equipment index.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Some iPhone 11, 11 Pro, 11 Pro Max users saw an unusual green tint on their displays after unlocking the device.
Samsung introduces a private mode called AltZLife in India; now available on Galaxy A71 and Galaxy A51
Samsung says that the entire software has been built at its R&D Institutes in Bangalore and Noida.