Networking giant Cisco announced yesterday that it will cut up to 5,500 jobs, or around 7% of its global workforce as it continues to adapt to the changing changing technology landscape, according to the company’s fourth quarter and fiscal Year 2016 earnings.
“Today’s market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we’ve seen in our history,” the earnings said.
It also revealed that the money saved on cuts will be reinvested in businesses that it expects to grow, including security, internet of things (IoT), collaboration, next generation data centres and cloud.
The earnings did not provide information on where people will lose their jobs and said the job action will be taken the first quarter of fiscal 2017 regarding the job cut plan.
Cisco currently has more than 70,000 employees as of April 30.
The number is huge but nowhere close to the 14,000 jobs cuts, or 20% of its workforce, reported on Tuesday by trade publication CRN.
In response to the report by CRN, Cisco said in a statement obtained by The Economic Times “We are in our quiet period and Cisco does not comment on rumour or speculation.”
Cisco is not alone in retooling its talent pool to meet the changing demand in the technology landscape. Earlier in the month, fellow software giant Microsoft Corp announced cutting 2,850 jobs related to its smartphone business in the next 12 months.
And in June IBM confirmed a report by Watching IBM – an IBM employee watchdog, that several hundred of jobs will be cut at IBM Netherlands.
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