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

Consumer Privacy in the Digital Era: Three Trends to Watch

By: Special Guest    1/18/2018

Digital advertising has exploded in recent years, with the latest eMarketer data forecasting $83 billion in revenue this year and continued growth on …

Read More

CES 2018: Terabit Fiber - Closer Than We Think

By: Doug Mohney    1/17/2018

One of the biggest challenges for 5G and last mile 10 Gig deployments is not raw data speeds, but middle mile and core networks. The wireless industry…

Read More

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More

Making Connections - The Value of Data Correlation

By: Special Guest    1/5/2018

The app economy is upon us, and businesses of all stripes are moving to address it. In this age of digital transformation, businesses rely on applicat…

Read More