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Cisco begins Australian leg of global restructure

Brian Karlovsky | Oct. 15, 2014
Cisco spokesperson unable to comment on the impact of the restructure on Australian operations due to company policy.

Cisco has allegedly set the balling rolling on the Australian portion of its global layoff plan which is set to axe about 6000 jobs worldwide.

According to a source, the company started a three-day consulting period which ended on Friday, October 10. It is understood some staff were asked to produce reports to justify their roles in the company.

Cisco Australia has neither confirmed nor denied this.

A Cisco spokesperson said they could not make any comment on the impact of the restructure on Australian operations due to company policy.

"Technology disruption has never moved more quickly, requiring all companies to adapt and accelerate through change," they said.

"We are taking action now to build for the future of Cloud, security, virtualisation, analytics, datacentre, IoE [Internet of Everything] and collaboration.

The spokesperson said Cisco would continue to invest in growth, innovation, and talent, while managing costs and improving efficiencies across our business.

"We are continuing to hire, especially in the areas that help our customers solve their biggest business problems," they said.

The plan was initially revealed in a Cisco earning call in the US on August 13, where it announced a limited restructuring across several segments of the business that would impact up to 6000 roles or up to eight per cent of the global workforce.

In August, Cisco chief executive and chairman, John Chambers, said the limited restructuring plans were consistent with the company's disciplined approach to growing resources in important areas while managing costs.

"These actions are focused on investing in growth, innovation, and talent, while managing costs and driving efficiencies," he said.

"We expect to re-invest substantially all of the cost savings from the restructuring actions in our key growth areas such as datacentre, software, security, Cloud, and others."

At the August earnings call, Cisco executive vice-president and chief financial officer, Frank Calderoni, said the company would take restructuring actions in FY15 that would be focused on continuing to invest in growth, innovation, and talent, while managing costs and driving efficiencies.

"These actions will impact up to 6000 employees, representing approximately 8 per cent of our global workforce."

"We expect to re-invest substantially all of the cost savings from the restructuring actions in our key growth areas."

Cisco reported 2014 financial year revenues of $US12.4 billion, net profit of $US2.2 billion or $US0.43 per share, and non-GAAP net profit of $US2.8 billion or $US0.55 per share.

 

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