Tuesday 28 January 2020

Cisco plans to cut 6,000 jobs from worldwide operation

A visitor walks past a Cisco advertising panel at the Mobile World Congress in Barcelona earlier this year
A visitor walks past a Cisco advertising panel at the Mobile World Congress in Barcelona earlier this year
Adrian Weckler

Adrian Weckler

CISCO, which employs around 300 people in Ireland, is to make 6,000 people redundant form its global workforce of 74,000.

The network infrastructure company has not specified which countries will bear the brunt of the job cuts, with cuts in its Irish operation thought to be unlikely.

The fresh round of redundancies comes after revenue at the company's fell for the first time in five years, to $47.1bn (€35.2bn) according to the company's latest set of accounts

The results underscore the difficulties facing the company's long time chief executive, John Chambers, as he prepares to step down from the company. The networking giant is facing a shift in industry expenditure from hardware to software.

However, analysts discounted fears that the job cuts signalled an overall reduction in Cisco's headcount ambitions.

In the last five years, the company has shed 25,850 jobs, according to data compiled by Bloomberg.

But the firm has added a similar number of jobs in the same period through acquisitions and other initiatives.

Decisions

"The market doesn't wait for anyone," said Chambers in a conference call.

"We are going to lead it, period. The ability to do that requires some tough decisions. We will manage our costs aggressively and drive efficiencies."

Chambers partly blamed the cuts on the uncertainty in global demand. In emerging markets, where the company faces sluggish sales and increased competition, Cisco saw continued challenges. China product orders fell 23pc, and Brazil had 13pc declines.

"Unfortunately, as we look out, we don't see emerging markets growth returning for several quarters and believe it could get worse," said Chambers.

Irish Independent

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