Cisco plans to fire 10,000 staff, according to information credited to Bloomberg and reported in NPR Nightly Business News. The plan will kick out of the doors, 7000 staff by August. Another 3,000 has already accepted buyouts.
The once innovative Cisco has been badly out-competed. Huawei has taken all the major contracts in Africa and Cisco has none. In enterprise business in the developed world, Juniper and HP have broken Cisco apart. Cisco could not find favor in the customer market with the camera Flip which it bought in excess of $500m and cloded. This company is in a pitiable state.
These cuts are by far more that what Cisco announced on its last disastrous earnings call. They represent 14% of the company’s workforce. With these cuts, Cisco will have a better qurater. The earnings will look good as that will boost it – the usual Wall Street magic.
Unfortunately, sales will not improve by firing people. Cisco problem is the Asian competitors which use price to knock it out of the market.
Certainly Obama and the pols will not be happy to have extra 10,000 in the statistics. But that is the reality. Our only question is this: will CEO John Chambers follow them? When will Cisco Board ask the man to go. He has lost clue on the world technology evolution and his tricks are gone. John Chambers should resign from Cisco . Time is now.