Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management
    • Networking

    Cisco Job Cuts Could Be Huge, Analysts Warn: Report

    By
    Jeff Burt
    -
    May 13, 2011
    Share
    Facebook
    Twitter
    Linkedin

      At a time when most tech companies are hiring workers, Cisco Systems is about to pare its workforce. And according to some analysts, those layoffs could be significant.

      During a May 11 conference call to discuss quarterly financial numbers, both Cisco Chairman and CEO John Chambers and COO Gary Moore said job cuts were on the way as the networking giant tries to get back on solid footing after several disappointing quarters.

      Neither would say how many of Cisco’s 73,400-plus employees would lose their jobs, but both made clear that such cuts were going to play a key role in the company’s efforts to pare $1 billion from its operating expenses this year.

      However, four analysts contacted by Reuters said the figure could be as high as 4,000, with the average being around 3,000. Some of that will include an early retirement plan the company has instituted, as well as attrition, but many will be straight layoffs. That would be more than the 2,000 jobs Cisco cut in 2002, after the Internet bubble burst.

      However, not all analysts believe the job cuts will be as steep. Shaw Wu, an analyst with Sterne, Agee and Leach, told Bloomberg that he expects layoffs to be in the “low thousands.”

      “Nothing that would be … huge,” Wu told Bloomberg. “It seems like more streamlining.”

      Chambers during the May 11 call said Cisco will dial down or exit underperforming businesses over the next few months, which will account for many of the layoffs. Soon after Chambers sent out a memo to employees in April saying that Cisco had lost its way and that changes would be made, Cisco revamped its consumer products business, which included shuttering its popular Flip video camera line. That move led to about 550 layoffs.

      Earlier this month,Cisco announced a reorganization of its sales, services and management units, including reducing the number of management councils from nine to three.

      The company has seen success in a number of its many units, such as its collaboration, wireless and data center businesses, the latter of which includes its UCS (Unified Computing System) converged infrastructure offering. All three saw at least 30 percent year-over-year growth.

      However, it’s been hit hard in its core switching and public sector, where federal agencies and state governments are contemplating deep budget cuts. Cisco in 2010 saw its switching market share drop to about 67 percent, according to IDC, down from close to 70 percent previously. Analysts said rising competition from thelikes of Hewlett-Packard, Juniper Networks, Avaya and Huawei Technologies are putting pressure on the market leader.

      “Cisco is more vulnerable now to competitors than at any time in its history,” Scott Dennehy, an analyst with Technology Business Research said in a report. “The company’s difficulties with execution combined with aggressive tactics by vendors such as HP and Huawei is providing unparalleled opportunities for competitors to take share in Cisco’s core markets. However, TBR expects this window will not be open indefinitely; Cisco has demonstrated its ability to manage through difficult times in the past, and once the company completes its transformation it will re-emerge as a more focused and driven vendor, supported by financial resources few can match.”

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×