Cisco Systems, Inc. is an American multinational corporation technology company headquartered in San Jose, California, that designs, manufactures and sells networking equipment worldwide. It is the largest networking company in the world. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ-100 Index and the Russell 1000 Growth Stock Index.
Cisco Systems is laying off about 14,000 employees, representing nearly 20% 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.
Cisco increasingly requires “different skill sets” for the “software-defined future” than it did in the past, as it pushes to capture a higher share of the addressable market and aims to boost its margins, the CRN report said citing a source familiar with the situation.
Cisco has been investing in new products such as data analytics software and cloud-based tools for data centers, to offset the impact of sluggish spending by telecom carriers and enterprises on its main business of making network switches and routers.
The company has already offered many early retirement package plans to Cisco’s employees, according to CRN.
Up until Tuesday’s close of $31.12 on the Nasdaq, the company’s stock had risen about 15% this year, compared with a 10.5% increase in the Dow Jones US Technology Hardware & Equipment index.