Posted on 08/17/2016 5:01:58 AM PDT by mykroar
Cisco Systems Inc is laying off about 14,000 employees, representing nearly 20 percent of the network equipment maker's global workforce, technology news site CRN reported, citing sources close to the company.
San Jose, California-based Cisco is expected to announce the cuts within the next few weeks, the report said, as the company transition from its hardware roots into a software-centric organization.
Apart from Cisco, two other big software companies, Microsoft Corp and HP Inc, have also announced job cuts this year.
Microsoft said in July that it would lay off about 2,850 jobs over the next 12 months, taking its total planned job cuts to up to 4,700, or about 4 percent of its workforce.
HP Inc said in February it would cut about 3,000 jobs by the end of fiscal 2016.
Cisco, which had more than 70,000 employees as of April 30, declined to comment.
More like a major realignment with market forces:
“...the company transitions from its hardware roots into a software-centric organization.”
Software running on low-cost, powerful COTS servers will beat custom silicon based hardware every time. You drastically shorten the product lifecycle and can roll out new features very quickly.
I got let go from a company going through the same transition. It was brutal because you have old customers on legacy hardware that simply do not want to change and others who are eager to change to the new systems. You need to continue development of the old systems at some level for a period of years and support them while doing R&D on the new systems, train the SEs and sales team on how to sell the new stuff. It’s no longer a gross margin driven business and the sales dynamics change a LOT.
It is a VERY HARD transition for a company to make successfully. The barriers to entry for new competitors have been lowered a lot by getting rid of custom silicon.
Yepper! The ole economy is on cruise control. Just hummin’ along. /S
I hope the coming big crash on Wall Street hits soon, well before the election.
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Unlikely in my opinion. The Fed is highly political and won’t allow it as long as a Democrat is president. It has to maintain the illusion of economic vitality and will print money and expand its balance sheet as long as it can. Whatever it takes.
But if Trump is elected, the Fed will soon begin ‘normalizing’ interest rates and of course the media will immediately start talking down the economy. Trump will be the fall guy for the crash. At least until he can turn it around with sensible economic policies.
Yes, Cisco has a nice ecosystem of highly paid consultants, gear and software. It’s the customer who pays. And pays. And pays...
I’m a contractor in an IT department of a major bank and one of 2 American born on my project team and one of 4 Americans in the entire department of 75.
My former employers is being taken over by Dell.
They promised Dell $1 Billion in cost reductions the first year after the acquisition.
Cost reductions = layoffs.
When I graduated from high school back in the 1960s, you could actually get a pretty good job with only a high school diploma. But not any more.
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Back in the good ole days when people graduated from high school they actually knew a thing or two and were well prepared for working entry level or apprentice type jobs. Grads were functionally literate, especially those on an academic track.
Nowadays, the modern high school graduate can barely read, write or do basic math. I taught at the college level for a while and saw this first hand. Today’s high schools are just factories that put children on conveyor belts and push them out the door. Few are prepared for real world jobs that require skills.
Crap. I have an interview with them this week.
Good news for Wall Street.
I can appreciate your situation. I too was in the IT field and it dawned on me early on that demographic trends (and the prevailing political winds) favored hiring foreigners. So I ‘transitioned’ into a job that was focused on planning and implementing systems. I had to learn a lot about contracting but it put me in a better place than being vulnerable in operational type jobs.
Best of luck to you.
My husband has been with Cisco for 16 yrs this month. He’s says if you’re getting laid off, you’ll get a meeting notice with a higher up the night before. I’ve been fearing it ever since he turned 50.
They're expensive, but usually bulletproof. This helps to explain some of the issues.
I work in a group that is 80% Indian. Latest new hire: Indian. The only white people in our group are me and a developer. I’m on the last half of a six month contract.
For those in Rio Linda, that’s 19350 FTE jobs being cut before 31DEC2016. Also, for those in Rio Linda, FTE means FULL-TIME Employee.
Again, for those in Rio Linda, “Full-Time Employee” means someone who works 40 hours EVERY week (and then some), pays taxes from their payroll which ultimately goes to some BLM activist in Oakland and Compton.
Y’all do the math (iffin you can?) or I can do it fer-ya.
A ^base^ IT job in CA pays (what?) $80K/yr taxed at an average of 27%. That means each job contributes $21,600 to the annual payroll tax-load.
19350 jobs contributing $21,600 each means that the LOCAL economy will be losing $417,960,000. That almost 500-million dollars of tax loss in the Silicon Valley alone.
:: Cisco - Spanish for “bend over” ::
“...was a friend of mine...”
CRN is Computer Retail News.
Of course. And Americans losing jobs is somehow a cause for celebration. Go figure.
You can be sure that 14,000 H1-Bs will remain at Cisco.
The question is, how long will it be before Cisco is demanding more H1-B visas, due to the “Talent Shortage.”
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