Cisco Systems, which briefly stalled its ritual annual layoffs last year, resumed it this year doubling the number it is sending home at 14,000, almost 20% of its total workforce this year.
The San Jose-based company has reportedly ran out of all avenues of early retirement package plans to its 73,104 employees worldwide and the decision that was foreseen by analysts as early as in January this year did not come over the night but was brewing over a long period, said a CRN report quoting sources. Cisco will announce its fourth quarter results tomorrow, Thursday after the markets close for the day.
Unable to tranform early, Cisco is pondering a wuick transition now from its hardware to a software-centric organization and most of the layoffs are expected in its hardware operations. However, cutting 14,000 employees marks the single largest layoff in Cisco’s 32-year history, said reports.
Cisco’s saga of layoffs began in 2011 when it had cut off 6,500 jobs and next year the number was relatively low at 1,300. In August 2013, it had announced job cuts amounting to 4,000 and increased the number to 6,000 in August 2014.
It missed the bus in 2015 reportedly due to an insider Chuck Robbins becoming CEO of the company. However, the axe is finally falling on almost double the number of employees, offsetting the loss last year. Currently, Cisco’s share has hit a nine-year high at $31.23 per share.