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San
Jose, California-based Cisco is expected to announce the cuts
within the next few weeks, the report said, as the company
transition from its hardware roots into a software-centric
organization. (http://bit.ly/2bEQfa3)
Apart from Cisco, the other tech giants, which have announced
job cuts in the face of PC industry decline in recent years, are
Microsoft Corp, HP Inc and Intel Corp.
Microsoft Corp kicked off one of the largest layoffs in Tech
history in July 2014 after it said it would slash 18,000 jobs.
(http://reut.rs/2aYTYzt)
HP Inc said in September 2015 that it expected to cut about
33,300 jobs over three years.
Intel said in April that it would slash up to 12,000 jobs
globally, or 11 percent of its workforce.
Cisco, which had more than 70,000 employees as of April 30,
declined to comment.
Cisco increasingly requires "different skill sets" for the
"software-defined future" than it did in the past, as it pushes
to capture a higher share of the addressable market and aims to
boost its margins, the CRN report said citing a source familiar
with the situation.
Cisco has been investing in new products such as data analytics
software and cloud-based tools for data centers, to offset the
impact of sluggish spending by telecom carriers and enterprises
on its main business of making network switches and routers.
The company has already offered many early retirement package
plans to Cisco's employees, according to CRN.
Up until Tuesday's close of $31.12 on the Nasdaq, the company's
stock had risen about 15 percent this year, compared with a 10.5
percent increase in the Dow Jones U.S. Technology Hardware &
Equipment index.
(Reporting by Ankit Ajmera and Bhanu Pratap in Bengaluru;
Editing by Sandra Maler and Sunil Nair)
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