Cisco is planning to fire as many as 10,000 people, Bloomberg reports.
According to the plans, which have yet to be finalised, the company will can 7,000 employees by the end of August. Another 3,000 have accepted buyouts.
These cuts are far greater than the ones Cisco announced on its last disastrous earnings call. They represent 14% of the company’s workforce and are designed to boost Cisco’s earnings growth, which has been disappointing as sales have fallen below expectations.
Cisco is getting its clock cleaned not only in its consumer division, which recently featured the shuttering of the “Flip” camera division that it bought for $590 million two years ago, but in its core enterprise business. The company is being undercut on price by likes of Juniper and HP.
Once celebrated for its extraordinary management and consistent growth, Cisco’s fortunes have changed radically in recent years.
CEO John Chambers’ growth strategy and management approach have also clearly failed. Unless he has some excellent new ideas, one hopes the board has considered adding his name to the list of those who go.
(via Zero Hedge)