So the economic downturn is still causing damages in most blue chip companies. The rumored news of Cisco planning to lay off a whopping 14000 of its employees is seriously not a pleasant news to behold. So according to a tech news site, CRN, they rumored that Cisco is making plans to reduce headcount in a few weeks.
This latest news is really huge, considering that Intel corporation had earlier announced of its plans to do same, in equally large scale. Well the 'rumor' has it that Cisco cited reason for it as a result of global economic effects on enterprise business low patronage of its Routers and Switches which constitute the bulk of what Cisco produce.
Though Cisco has always maintained that it is majorly a software based company with its range of software based products and services being rolled out consistently. According to the news source,CRN, one of the analysts interviewed said that if the rumored lay off was true, that would be a bit of a catch-up, as the company is moving away from hardware.
He went ahead saying, "I do not think that they are going to be done after this." The tech site went further to say that the company has already offered many early retirement packages to the employees. This news was flying around before Cisco came out to announce the actual number of employees to be laid off on Wednesday press conference.
Cisco denied ever releasing or leaking any documents concerning the number of employees to be laid off being carried on on most tech news sites.
CRN reporter Mark Haranas also denied that the information came from Cisco, and added that his report said that the cuts would come over the next few weeks, suggesting Cisco could still add to its total beyond what was disclosed.
In trying to calm things down a bit, Cisco Chief financial Officer, Kelly Kramer said that "We are going to continue to do acquisitions, and we will continue to hire to get the right people” this year despite the restructuring.So according to her, Cisco had added about 1,600 employees through acquisitions in the fiscal year that ended July 30, and hired employees mostly focused on the company’s software and services businesses.
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