Cisco to save $2 bn from restructuring, but no layoffNovember 17th, 2008 - 6:21 pm ICT by IANS
New Delhi, Nov 17 (IANS) Global network applications major Cisco hopes to save $2 billion from restructuring and streamlining operations across the globe, the company said here Monday.Cisco plans to achieve this by freezing fresh hiring and adopting austere measures; it, however, will not include lay off employees.
“The crisis has certainly has had an impact on revenues and we are looking at ways of staying competitive,” Cisco Services chief globalisation officer and executive vice president William Elfrink told reporters here on the sidelines of the World Economic Forum-promoted India Economic Summit.
“We would save about $2 billion from such measures and are looking to invest about $500 million back into our business,” he added.
Cisco has about 5,000 employees in India and the freeze on fresh hires is applicable to the Indian operations as well. “We are not looking at fresh hiring in the near future but there are no layoffs planned as well,” Elfrink said.
Earlier this month, Cisco had stated that earnings in the coming quarter would come under pressure.
Affirming this, Elfrink said: “The slowdown has affected our quarterly performance and revenues fell by 5 to 10 percent.”
Cisco has a market share of over 30 percent globally in the network applications business and have ambitious growth plans.
“We have a long-term goal of achieving a 60 percent market share”, Elfrink said, but declined to specify when Cisco hoped to get to this mark.