Cisco is on the verge of a massive workforce reduction. The company could cut up to 14,000 employees worldwide, or as much as 20% of its total workforce, according to sources cited in CRN.
Cisco, due to announce its fourth fiscal quarter this week, is shifting from hardware to software. This fundamental shift in company strategy is triggering most of the cuts.
As of April, the company has 73,000 employees. In 2014, Cisco cut 6,000 jobs. In 2013, the company axed 4,000 workers. In 2012, Cisco ended 1,300 positions. In 2011, the company cut 6,500 jobs.
Cisco declined to comment.
UPDATE: Cisco is cutting 5,500 jobs.
Today, we announced a restructuring enabling us to optimize our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security, IoT, collaboration, next generation data center and cloud. The restructuring will eliminate up to 5,500 positions, representing approximately 7 percent of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017.