On Thursday, Cisco has made an announcement that it plans to expire almost 6,000 employees during the ongoing quarter as the venture networking vendor is determined hard to return to the growth curve. During an analyst call this California based company announced a job-cut up to 6,000 in the months ahead.
The enterprise is looking forward to revamp its engineering team. Presently Cisco employee count is 74,042, across the globe. During the current quarter the headcount increased to 74,042 from the last quarter’s 73,834. In the last quarter of FY 2013, Cisco’s employee count was 75,049. A decrease in revenue was recorded in Q4 FY 2014 and this 0.5 per cent reduction brought down the revenue to $12.04 billion. The company’s net income also dipped by 1 per cent to $2.2 billion.
In the entire FY 14 so far, the company’s revenue dropped by 3 per cent to $47.1 billion and net income also came down by 21.3 per cent to $7.9 billion. Cisco CEO John chamber told about the employee elimination step, “This will be a reallocation of resources. We will invest these resources in our growth areas, such as cloud and security.” An aggressive campaign was recently launched by the company to lead the Internet of Things (IoT) market. During March an announcement was made by Cisco that they will invest around $1 billion in order to build an Intercloud network which will address the Internet of Everything market.
Cisco has recorded a thrust in the IoT space. Cisco, in the fourth quarter of FY 14, built a partnership with Hamburg, Kansas City, and Barcelona and this new partnership will create Internet of Things infrastructures. An agreement was also signed between Cisco and Denmark which was aimed to develop an IoT infrastructure in three cities, which also include Copenhagen.
