August 26th, 2011 
Paul Smith Cisco Systems, the largest networking-equipment company, may cut as many as 10,000 jobs, or about 14% of its workforce, according to two people familiar with the plans. The cuts include as many as 7,000 jobs that would be eliminated by the end of Aug 2011, said the people, who asked not to be identified because the plans aren’t final. Cisco CEO John Chambers is slashing jobs and exiting less-profitable businesses as competitors such as Juniper Networks and HP take market share in Cisco’s main businesses with lower-priced, simpler products.
Cisco said in May 2011 that it shuttered the Flip video-camera unit and cut 550 jobs. The company may eliminate more positions in the consumer-product unit, which makes Linksys home-networking equipment. Sales of Cisco’s switches and routers, which made up more than half of revenue last year, will continue to slip, said Brian Marshall, an analyst at Gleacher & Co. Cisco stock had dropped 24% so far in 2011, while the S&P500 index had risen 4.9%.
- It would be quite a waste to see anything happen to the Linksys division, which used to be a standalone company in its own right until Cisco acquired them. So far all the home routers I have used have been Linksys products, from the wired BEF-SR41 to the Linux-based WRT54GL and now the Cisco Linksys E3000 wireless router, and they have all been reliable and served well over the years.
On the enterprise front, however, what I have heard from colleagues back at the office have not been as favorable in recent times, with some of them talking about the high cost and complexity especially of the newer Cisco switches and routers. In addition, as Cisco tried to integrate security features such as firewalls and intrusion detection systems into their products, I have actually been advised to specify other models from say Juniper instead, as their combo appliances are supposed to be actually cheaper and better. With the increasing level of maturity in this technology sector, the next frontier is inevitably pricing and this is where we might be looking directly at the impact of that.
Similar Posts:
- Cisco WebEx Meetings App for Android Platform
- Ambiq Micro Wins Another Business Competition
- Businesses Spend More On Durable Goods In May
- Good and Bad News: As the economy grows, the new congress is set to re-hash political battles
- ANZ Holds Mortgage Lending Rate Steady But Plans Staff Cuts
Posted in 
Tags: