ITVoice News: This exercise is a part of Cisco’s global reorganization efforts to invest in further growth, innovation and talent.
200 engineers, employed with Cisco, have been shown the way towards doors with pink slips in hands.
These engineers have been working for NDS India, one of the subsidiary of Cisco. This laying off exercise has been conducted in three phases, across the last two quarters.
Cisco acquired NDS in 2012 and at the time of acquisition the division employed 1,600 engineers. This exercise is a part of Cisco’s global restructuring efforts. NDS builds software for TV set-top boxes for cable TV providers. STBs are growing very slowly, as per analysts from TechNavio. A Cisco spokesperson said the company doesn’t comment on India specific workforce but transcripts from the recently concluded conference have been mentioned. Cisco CEO John Chambers said, “Consistent with our regimented approach to growing resources in important areas while managing costs, when Frank Calderoni (the company’s Executive Vice-President and CFO) details guidance later in the call, we will announce our plans to do a limited restructuring across several areas of our business.”
These exercises are done to invest in further growth, innovation and talent. The company is trying hard to manage costs and driving more efficiencies. Calderoni also said that Cisco will go through this restructuring phase in FY15 and these actions are going to affect around 6,000 employees. Cisco has plans to reinvest a substantial portion of the savings from cost-cutting for hiring more talent.
As learnt from another employee that talks are going on to hire new talents with different skillsets. Understanding of technologies in STBs and mobility will be focused while hiring these new talents. It will be a challenge in the existing workforce, definitely.
