Cisco Systems is a company focused on the manufacture, sale and maintenance of equipment of telcos such as routers, hubs, switches, but in addition also focus on software through the implementation of firewalls, VPN services… but its main business is related to network management and security that surrounds them. Califronia-based company announced a few days ago the dismissal of 5,500 employees to close the hardware division and focusing solely on software. Those last results financial us have shown as it division of hardware has returned to offer ones numbers flat, while the division of software has grown a 20% in comparison with the year earlier.
The company has decided to take the decision despite having achieved a benfeicio of nearly 11,000 million. Those 5,500 layoffs add to the 6,000 employees Cisco slashed in 2014 and the 4,000 announced last year to try to adapt to the new needs of the market. He main reason of the dismissal is reduce costs e invest in them service in the cloud that it company is putting underway and with which wants to compete with the giant Amazon and Google, current Kings of the market with regard to storage in the cloud for companies.
The CEO of Cisco, Chuck Robbins proposed since coming to the post of head of the company last year, change the direction in which the company has taken in recent years, leaving aside the hardware manufacturing to focus on services in the cloud and in the software. Since the new CEO has taken the control of Cisco, the signature has bought fifteen companies many of them related with services in the cloud, what us gives to understand which are the priorities of it company in them next years.
