Cisco prepares its annual cull
Industry and enterprise move to the cloud and software defined networks blamed
14,000 employees may go
Another big networking company is to announce a significant headcount reduction as the industry pivots to the cloud and software defined commodity hardware. Cisco Systems is reportedly preparing to cut 14,000 employees from its global workforce, with detailed announcements (where and when) expected in the next few weeks, according to news site CRN.
In fact the last decade has seen a steady stream of Cisco layoffs as it buys companies, absorbs them and then periodically spits out surplus employees. CRN points out that Cisco layoffs are practically an annual event: in 2011 6.500 employees were axed; in 2012 another 1300 positions went; in 2013, 4000 left the building; in 2014 6,000 met their end. Last year nothing – which might account for this year’s bumper cull with, if the reports are accurate (so far neither confirmed or denied by Cisco) a full fifth of the current workforce soon dusting off their CVs and hitting the road.
Cisco is not alone of course. Last month Ericsson announced a big $1.05 billion cost cutting programme, a move which implied a 25,000 employee reduction – very similar proportionately to Cisco’s