Eunice Bakr
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Even Cisco is cutting jobs again, where are we heading?

"Cisco Systems Inc. (CSCO) Chief Executive Officer John Chambers is struggling to revamp the world’s largest networking-equipment maker, eliminating 6,000 jobs in a new round of cuts and forecasting little to no sales growth.

Including the latest firings, representing about 8 percent of Cisco’s workforce of 74,000, the company has gotten rid of 25,850 positions since February 2009, according to data compiled by Bloomberg. Revenue fell 3 percent to $47.1 billion in the fiscal year that ended July 26, the first decline in five years.

The results underscore the difficulties facing Chambers as he seeks to remake Cisco and leave it in the hands of a successor. With the CEO nearing retirement after almost two decades, customers are telling Chambers that they won’t keep paying for expensive hardware that shuttle data and Internet traffic, when software can squeeze out more performance and make the machines more versatile. While Cisco has introduced software-driven products, that hasn’t yet boosted revenue."

Bloomberg