back to article Cisco raises axe above 14,000 staff – reports

Cisco is rumoured to be laying off up to 14,000 staff - nearly 20 per cent of its global workforce - part of a shift toward becoming a software-focused biz. Multiple sources have told US site CRN, the cuts will hit between 9,000- 14,000 of the company's global 73,104 employees. The biz has 7,000 employees in the UK. "They …

  1. qzdave

    Baby bath water and aa the toys

    So management are going to grow by getting smaller. Same as IBM. Shame that Mgmt couldn't read the market changes and plan accordingly. Maybe even do some, you know, training and development. Laying off 20% shows they are not in control of their business.

  2. Anonymous Coward
    Anonymous Coward

    Good luck, Cisco.

    Cisco Lay off employees every 1 or 2 years, which become one part of its culture. This makes almost impossible to maintain young and good talents ---- every time, they will be throw out of door because of balance. Also, every time they reduce the staff, within one or two years, the number of employee will bloat soon. Why, so many average managers, they tried to promote and protect themselves by hiring. This is also why Cisco can't deliver their own vision and depends on MPLS. Without cutting those middle mens, Cisco can't go anywhere.

    Software-defined is just another excuse Cisco upper management can't handle the change.

    Good luck, Cisco.

  3. Anonymous Coward
    Anonymous Coward

    Not exactly surprising.

    Another year, another round. Not surprising.

    Here's hoping the packages are as good as the one I got a couple of years ago...

    1. Anonymous Coward
      Anonymous Coward

      Re: Not exactly surprising.

      And the people who were disappointed that they didn't get to go with us have their chance now.

    2. Anonymous Coward
      Anonymous Coward

      Re: Not exactly surprising.

      What kind of packages were offered last time?

      1 week's pay per year of service - or better?

      1. Anonymous Coward
        Anonymous Coward

        Re: Not exactly surprising.


        1. Anonymous Coward
          Anonymous Coward

          Re: Not exactly surprising.

          I heard 2 weeks for every year employed and a month up front on top.

          Am I close?

  4. Anonymous Coward
    Anonymous Coward


    Humm, I wonder Huawei will be left to manufacture and sell the hardware?

    1. Anonymous Coward
      Anonymous Coward

      Re: Hardware

      Are you insinuating that Huawei hardware is extremely similar to Cisco hardware?

      How could you say such a thing?


  5. Howard Hanek


    Both Cisco and IBM seem to have HR policies I equate with a vane, wealthy individuals who gets extensive liposuction treatments every year or so. Equating employees with excess fat is NOT the way to lead them to their true potential and establish a healthy relationship with the others. The company's goals shouldn't include dying of anorexia.

  6. Fan of Mr. Obvious

    Same old song

    In the 90's Cisco said they were a "software company." In 2000 Cisco said they were a "software company." In 2010 Cisco said they were a "software company."

    Cisco should stop trying to dupe the uninitiated and just say what it is -- a layoff because the economy is taking and they need to cut costs, mismanaged business, cutting out the slackers, whatever.

    I get the whole need to make things palatable for public consumption, but seriously, when you are talking 20% of your employees you need a new song.

    1. Ashley_Pomeroy

      Re: Same old song

      It's not a layoff. It's a resource action.

      Surprisingly the share price has gone down. Share prices in general have gone down, but perhaps the magic isn't working any more.

  7. Kevin McMurtrie Silver badge
    Paris Hilton

    Company that makes hardware for the cloud is laying off staff and moving to the cloud.

    1. Howard Hanek

      Another Miraculous Ascension

      ......will they invite the media to the event? How will they communicate later?

  8. Anonymous Coward
    Anonymous Coward

    competition is brutal


    Cisco is having to compete with novel designs that are cheaper, faster, more compact from Brocade, Huweii, Dell, etc. Huweii is predominant in Asia where IT infrastructure growth's still occuring.

    As stuff moves to the cloud, fewer (higher margin) core switches are required.

    Cloud companies are rolling out more flexible software-defined networking, instead of opting for traditional (i.e. Cisco) rigid hardware-defined designs.


    What's left at the edge is being eaten by lower cost enterprise competitors - Brocade, Dell, HP, Enterasys/Extreme, Alcatel, etc.

    The ankle biters - Netgear etc - are all moving up in this space too.

    Smart Net?

    Only dummies bought Smartnet on their edge switches - (always cheaper to stock spares) and with Cisco resellers rolling out their own versions of smart net at lower cost, less is being booked on the remaining core sales.


    Cisco's done well to capture a small but profitable slice of the server business, but it's struggling to grow further vs HP and Dell, due to the main growth coming in OEM vendors - aka cloudy tin.


    Watch Cisco's gross margins in their quarterly reports.

    Cisco has significant and systemic structural issues, it appears. The headwinds are against them.

    1. Kernel

      Re: competition is brutal

      "What's left at the edge is being eaten by lower cost enterprise competitors - Brocade, Dell, HP, Enterasys/Extreme, Alcatel, etc."

      I think you're under estimating Alcatel-Lucent's (Nokia's) place in the scheme of things. (Alcatel is a Chinese cellphone manufacturer)

      The 7950XRS is a little more than an edge switch.

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