Cisco Systems will cut as many as 6,000 jobs over the next 12 months, saying it needs to shift resources to growing businesses such as cloud, software and security.
The move will be a reorganization rather than a net reduction, the company said. It needs to cut jobs because the product categories where it sees the strongest growth, such as security, require special skills, so it needs to make room for workers in those areas, it said.
Cisco has about 74,000 employees, so the cuts will affect about 8 percent of its staff. It will take charges of about US$700 million for the cost of the reorganization, up to half of that in the current quarter, Chief Financial Officer Frank Calderoni said.
Cisco announced the move on a conference call to discuss its financial results for the quarter, the fourth of its fiscal year. Its revenue and profit were roughly flat compared with a year earlier, though Chambers said he’s grown more optimistic over the past few months. Read More.