Earlier this morning, Cisco confirmed that they will be eliminating 1,300 jobs in order to reduce costs and streamline processes. In total, this job elimination marks a 2% overall reduction in staffing.
Cisco employees were advised of the bad news earlier today as well through an internal email message that was sent out to all employees and according to the company, the moves were necessary in order for the company to remain viable in today’s global climate. This move adds to the job eliminations that the company started last year in which they moved to cut $1 billion from their operating costs by eliminating 6,500 full time positions. That move worked out to a 9% reduction in overall complement for the company.
Over the last few years, Cisco has seen their sales and profits decline in the face of ever increasing competition and these latest moves are meant to try and remove less profitable lines of business from the company. In doing so, the Cisco is hoping that more time and energy can be focussed on the more profitable divisions of the company. In this regards, Cisco has moved away from its Cius tablet plans and instead, additional emphasis is being placed on cloud technology, collaborative features and routing.