Cisco will be cutting 4000 jobs or or 5 percent of its workforce. If the company is growing then they will be hiring more qualified key employee but if the company is loosing profit. They had to plan on advance to slash percentage of the workers.
Poor performance of the employee is moving to the right direction into right sizing. Which means get only the key people who are creating more assets to the company.
Liability employe will must loss their jobs in right sizing the company. Stability and grow is what matters for the company. Their are plenty of factors why company had to slash jobs. One factor if the country economy is not working for them to grown then it will affects thousands and millions of business .
Reasons why they needs to cut jobs are:
-Cisco’s service provider business, which continues to get a lift from the $5 billion acquisition of NDS, pulled down $1.18 billion in the quarter, up 23%.
-Cisco shares were down 10% in after-hours trading.
-Cisco said last month it plans to buy cybersecurity company Sourcefire Inc for $2.7 billion.
-“Massive, scale-out data centers aren’t buying into Cisco’s heavy-duty management feature sets, and are instead buying stripped-down gear out of Asia specially China at much lower prices. Cisco is worry with a big shift in the networking business:
-The “economic recovery is slower and more inconsistent”
-Weaker sales in Japan, China and Europe weigh on revenue growth.
-Cisco faces specialized competitors with advanced technologies. This are some of the 3list competition from companies including Palo Alto Networks Inc. (PANW:US), Arista Networks Inc. and Huawei Technologies Co. in its core routing and switching markets, as well as security.
-Cisco has spent $10.61 billion buying 59 companies, including $5 billion last year on NDS Group Ltd.,