Cisco Lays Off 1,300 Employees to Compensate for Low Quarterly Revenue

By Rory Lidstone July 24, 2012

Bad news from Cisco yesterday.

The company has lain off 2 percent of its staff, amounting to about 1,300 employees of the 65,000 workers on the company's payroll. According to a source close to the company, a large chunk of those employees – about 400 – were from its Collaboration business unit, namely sales people in its WebEx unit.

Another anonymous source stated that Cisco cut its entire sales team for its Wide Area Application Services (WAAS) product, meant to help networks process data faster. Officially, however, there is no word as to which sections of Cisco received the layoffs.

Cisco did say that this is just part of an effort to "simplify its operations" while adjusting to changing economic conditions globally. It pulled a similar move last year, shedding about 10,000 jobs as part of a program to save $1 billion annually.

"We routinely review our business to determine where we need to align investment based on growth opportunities," the company said in a statement. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco."

This most recent move to save money was apparently influenced by lower-than-expected revenue for this most recent quarter – well below Wall Street expectations.

Earlier in the year, Cisco dropped its tablet, the Cius, after realizing that it just could not topple Apple's iPad in that market.

"Cisco will no longer invest in the Cisco Cius tablet form factor, and no further enhancements will be made to the current Cius endpoint beyond what’s available today," said Cisco officials. "Moving forward, we intend to double down on software offerings, like Jabber and WebEx, that provide the anytime, anywhere, and any device experiences. We will leverage key learnings and key collaboration experiences native to Cius in our other collaboration products."


Want to learn more about the latest in communications and technology? Then be sure to attend
ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. For more information on registering for ITEXPO click here.

Stay in touch with everything happening at ITEXPO. Follow us on Twitter.




Edited by Braden Becker

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

Modern Moms Shaping Influence

By: Maurice Nagle    7/19/2018

Everyone knows Mom knows best. The internet is enabling a new era in sharing, and sparking a more enlightened, communal shopping experience. Mommy blo…

Read More

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More