With Demand For Its Products Down, Cisco Will Cut Workforce

August 17, 2016

Cisco Systems is cutting its workforce by 5,500 employees to keep up with a rapidly changing tech sector that has less demand for the routers and switches that brought the company to prominence over 30 years ago. Cisco CEO Chuck Robbins is interested in making another kind of switch into different businesses such as security and online or cloud services.

The telecom companies which have been some of Cisco’s biggest customers have been relying more on remote data centers for computing needs instead of networks on their premises. Robbins took over a year ago and has stepped up acquisitions. Cisco has purchased 10 companies in the last year to help advance its newer businesses.

Cisco isn’t the only tech behemoth to struggle with the shifting tech landscape. In April, Intel — the world’s largest maker of computer chips — announced it would layoff 12,000 workers. HP, one of Silicon Valley’s pioneering companies, split itself into two companies and both have continued to cut back.

Cisco says its layoffs will begin this quarter.

Copyright 2016 NPR. To see more, visit http://www.npr.org/.

You Care.

You are one of the CPR readers who wants to know what is really going on these days. We can help you keep up - The Lookout is a free, daily email newsletter with news and happenings from all over Colorado. Sign up here and we will see you in the morning!