With the latest round of layoffs at Cisco, industry experts like analyst Paul Kedrosky are again calling for John Chambers’ head.
Cisco stunned the tech world Wednesday when it said it was firing 4,000 more people, even though it reported a solid quarter. Cisco hasn’t said yet which business units will feel the brunt of the layoffs except to promise Sourcefire employees that that they are safe for now.
(Sourcefire is a security company that Cisco is in the process of buying.)
But who knows how long that will last? This is actually Cisco’s second layoff this year, and it’s been trimming people steadily since 2011.
The ongoing layoffs are not surprising, giving that Cisco “is really the amalgamation of a host of acquisitions dating back to the 1990s,” Kedrosky said today on Bloomberg TV. Kedrosky is a former tech stock analyst, an investor, and the guy behind the popular financial blog “Infectious Greed.”
“Some of what we’re seeing is an unwinding that should have happened a long time ago,” he said.
Cisco’s problem is that it’s facing a lot of smaller competitors that react quicker and offer products that cost less.
When asked if it was time for Chambers to leave Cisco, Kedrosky said, “God, yes. Can we compel him?”
Cisco is a growth-through-acquisitions CEO. What the company needs now is an “efficiency expert,” Kedrosky says.
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