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Cisco begins Australian leg of global restructure

Cisco begins Australian leg of global restructure

Cisco spokesperson unable to comment on the impact of the restructure on Australian operations due to company policy.

Cisco chief executive and chairman, John Chambers.

Cisco chief executive and chairman, John Chambers.

Cisco has allegedly set the ball rolling on the Australian portion of its global layoff plan which is set to axe about 6000 jobs worldwide.

According to a source, the company started a three-day consulting period which ended on Friday, October 10. It is understood some staff were asked to produce reports to justify their roles in the company.

Cisco Australia has neither confirmed nor denied this.

A Cisco spokesperson said they could not make any comment on the impact of the restructure on Australian operations due to company policy.

"Technology disruption has never moved more quickly, requiring all companies to adapt and accelerate through change," Cisco said.

"We are taking action now to build for the future of Cloud, security, virtualisation, analytics, datacentre, IoE [Internet of Everything] and collaboration."

The spokesperson said Cisco would continue to invest in growth, innovation, and talent, while managing costs and improving efficiencies across our business.

"We are continuing to hire, especially in the areas that help our customers solve their biggest business problems," Cisco said.

Cisco announced its restructuring plans in August, impacting several segments of the business and about 6000 roles or up to eight per cent of the global workforce.

In August, Cisco chief executive and chairman, John Chambers, said the limited restructuring plans were consistent with the company's disciplined approach to growing resources in important areas while managing costs.

"These actions are focused on investing in growth, innovation, and talent, while managing costs and driving efficiencies," he said.

"We expect to re-invest substantially all of the cost savings from the restructuring actions in our key growth areas such as datacentre, software, security, Cloud, and others.”

Cisco executive vice-president and chief financial officer, Frank Calderoni, said it would take restructuring actions in FY15 that would be focused on continuing to invest in growth, innovation, and talent, while managing costs and driving efficiencies.

"These actions will impact up to 6000 employees, representing approximately 8 per cent of our global workforce.”

“We expect to re-invest substantially all of the cost savings from the restructuring actions in our key growth areas.”

Cisco reported 2014 financial year revenues of $US12.4 billion, net profit of $US2.2 billion or $US0.43 per share, and non-GAAP net profit of $US2.8 billion or $US0.55 per share.

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Tags Frank CalderonirestructurelayoffsCisco chief executive and chairmanJohn ChambersCisco executive vice president and chief financial officer

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