Argyll Free Press

Growing News Network

Wednesday, March 22, 2023
Log in
  • Business
  • Finance
  • Sports
  • Tech & Science
    • HP Envy 4500 Review
    • LG Optimus 170 Review
    • iPod Touch 6th Generation Review
    • HTC One M8 Accessories Set-up
    • Surrealist Games You Must Play
    • Hisense Sero 8 Review
    • Dell Latitude e7440 Review
    • HP Laserjet 1536dnf mfp Review
    • Garmin Fenix 2 Review
    • Skype Vs Viber
    • Best Video Conferencing Software
    • Sony mdr 1r Headphones Review
    • Canon Rebel t3i Review
    • Sennheiser Momentum 2-0 Review
  • Travel
  • Headlines
  • Health
  • United States

5,500 Cisco Employees to Lose their Jobs amid Shifting Business Model

August 19, 2016 By Michael Turner Leave a Comment

Cisco HQ

Former Russia’s President Dmitry Medvedev with former CA Gov Arnold Schwarzenegger at Cisco headquarters.

The networking hardware giant Cisco Systems announced this week that 5,500 of its employees will be forced to seek another job as the company is transitioning to the cloud business.

It is the fourth time in six years that the tech company announces job cuts in the middle of summer. Experts noted that the regularity with which Cisco now announces its summer layoffs may signal that trimming the workforce has become business as usual for the company.

Other tech giants such as Intel have made a habit of downsizing workforce at regular intervals. The semiconductor chip maker announced earlier this year that it would lay off 11 percent of its workers.

And analysts expect other companies to soon follow suit as cloud computing is gaining steam worldwide. As a result, many hardware makers including server and storage device producers will be forced to face restructuring or die. Cisco is renowned for its routers and switches which could soon no longer be relevant.

Cloud technology expansion has added tremendous pressure on tech firms since the start of the year. For instance, Hewlett-Packard had to split up, while Dell is about to merge with EMC. Additionally, IBM is seeking new ways of remaining competitive against Microsoft and Amazon.

Cisco hasn’t sunk yet because its router and server business is doing fairly well. According to a company’s report, the business generates 45 percent of its revenue, which is a 7 percent decrease from a few years ago.

Despite the slight reduction in sales, its core business remained profitable due to a gross profit margin of about 60 percent, which hasn’t changed in years. The steady profit allowed the company to buy itself some time to rethink its business model.

Analysts are now curious to see whether the hardware giant has the will and resources to make the proper adjustments to survive in a cloud computing-based world. Currently, there is a huge demand for “hyperscale” hardware parts that are resilient to immense volumes of traffic. So, if Cisco moves quickly it may manage to hold off rivals in new markets as it has done before.

Plus, the San Jose, Calif.-based company faces other challenges such as the software defined networking (SDN) standard which could render the company’s integrated routers and switches irrelevant. Still, analysts noted that SDN is only at the beginning and has a long way ahead before it can revolutionize networking as we know it.

Image Source: kremlin.ru

The following two tabs change content below.
  • Bio
  • Latest Posts

Michael Turner

Remember that strange guy from high-school who never seems to be paying any attention to classes and is completely absorbed by his doodles and sketches? That’s was me 14 years ago. I’ve been drawing for as long as I can remember - according to my mom, since I was in diapers - and that has never changed - except for the diaper part. For a very long time I thought that animations and graphic design are my calling, but two years ago I got side-tracked and started building an interactive website with a couple of friends. It received instant gratification from fellow internet users, and that’s when I realized that the virtual medium is where I belong. I can freely share my passions with others, work on ingenious new projects and find the most fascinating information about, well, everything. I spend most of my free time writing reviews for crazy gadgets on ArgyllFreePress, I work as an interactive designer for an independent firm and I also received my Fine Arts degree from the University of Oxford.

Latest posts by Michael Turner (see all)

  • Beachfront Bargain Hunt Guest Diagnosed with Neck Cancer by Doc Watching Show from Home - June 6, 2018
  • Boy Accidentally Shoots Four-Year-Old Brother with Real Gun - May 23, 2018
  • Grim Sacramento Storage Unit Discovery Leads to the Arrest of Couple - May 21, 2018

Filed Under: Business

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 10 other subscribers

Recent Articles

police handcuffs man

German Man Probed In Poisoning That Killed 21 Employees Since 2000

June 29, 2018 By Kenneth Scott Leave a Comment

Chicken wings bar

Intoxicated South Carolina Man Punches Waitress Who Refused to Serve Him Alcohol

June 29, 2018 By Karen Jackson Leave a Comment

gaming

New Zealand gamer Who Flew Halfway Across The World for Virginia Teen Gets Shots By Her Mother

June 28, 2018 By Cristopher Hall Leave a Comment

party

Former Virginia Tech Freshman Sentenced to 50 Years in Prison for Stabbing a Girl to Death

June 28, 2018 By Roxanne Briean Leave a Comment

bonfire

British Couple Sentenced to Life in Prison for Torturing and Murdering French Nanny

June 27, 2018 By Deborah Campbell Leave a Comment

pay phone

Texas Father of Girl Disappeared in the 80s Ignored by Authorities

June 26, 2018 By Cristopher Hall Leave a Comment

bottled water

San Francisco Woman Threatened to Call Police on Girl Who Sold Ice Water for Disneyland Trip

June 25, 2018 By Roxanne Briean Leave a Comment

Maplewood Park

Missouri Man Robbed by Date and Accomplice in Park

June 22, 2018 By Nancy Young Leave a Comment

coding

New York Man Sentenced in Cyberstalking Former Girlfriend, Mailing Drugs to Her Dorm

June 22, 2018 By Deborah Campbell Leave a Comment

headphones

Bose Poised to Launch Sleepbuds, In-Ear Headphones That Help You Sleep

June 21, 2018 By Nancy Young Leave a Comment

Police light

Intoxicated Female Driver in Custody for Pulling Arresting Officer by the Hair

June 21, 2018 By Kenneth Scott Leave a Comment

kitchen

Restaurant Manager Arrested and Charged in Shooting Death of Co-Worker over Negative Yelp Reviews

June 20, 2018 By Karen Jackson Leave a Comment

plastic container

Pennsylvania Couple Charged in Violent Death of Infant Discovered Buried in Cat Litter

June 19, 2018 By Cristopher Hall Leave a Comment

tailpipe

Minnesota Teen Gets Head Stuck In Oversized Tailpipe Winstock Music Festival

June 18, 2018 By Karen Jackson Leave a Comment

Pages

  • About Us
  • Contact us
  • Privacy Policy
  • Privacy Policy GDPR
  • Staff
  • Terms and Conditions

Recent Posts

  • German Man Probed In Poisoning That Killed 21 Employees Since 2000 June 29, 2018
  • Intoxicated South Carolina Man Punches Waitress Who Refused to Serve Him Alcohol June 29, 2018
  • New Zealand gamer Who Flew Halfway Across The World for Virginia Teen Gets Shots By Her Mother June 28, 2018
  • Former Virginia Tech Freshman Sentenced to 50 Years in Prison for Stabbing a Girl to Death June 28, 2018
  • British Couple Sentenced to Life in Prison for Torturing and Murdering French Nanny June 27, 2018
  • Texas Father of Girl Disappeared in the 80s Ignored by Authorities June 26, 2018
  • San Francisco Woman Threatened to Call Police on Girl Who Sold Ice Water for Disneyland Trip June 25, 2018

Related Articles

  • Bitconnect logo

    Controversial Crypto Exchange Shut Down for Being a Ponzi Scheme

    Jan 17, 2018
  • Samsung Galaxy S6 Edge

    Samsung’s Operating Profit Jumps 64%, Annual Sales Hit Record Highs

    Jan 9, 2018
  • Walt Disney 21st Century Fox

    Disney Wants a Big Slice of 21st Century Fox

    Nov 7, 2017
  • News in a newspaper, on a mobile app, and on a tablet

    Google Gives a Helping Hand to Online Publications By Giving Up on the First Click Free Rule

    Oct 3, 2017
  • Dakota Access Pipeline protest

    Dakota Access Pipeline Developer Now In Legal Battle With Greenpeace Activists

    Aug 23, 2017
  • request a drive for someone else

    Uber Adds a New Feature. Requesting a Drive for Someone Else is Now Possible

    Jun 29, 2017
  • marijuana leaves

    The Price Of Marijuana Has Decreased In Colorado

    Sep 13, 2016
  • British Airways encountered computer glitch

    British Airways Travelers Delayed By Computer Glitch

    Sep 6, 2016
  • Coca-Cola and the company's good deeds

    The Good Deeds of Coca-Cola

    Sep 5, 2016
  • Ruger pistol

    America’s Largest Gun Maker Posts Record Sales, Worries about Clinton

    Aug 6, 2016

Categories

  • Business
  • Entertainment
  • Finance
  • Headlines
  • Health
  • Life
  • Nature
  • Science
  • Sports
  • Tech & Science
  • Travel
  • Uncategorized
  • United States
  • World

Copyright © 2023 ArgyllFreePress.com
About · Privacy Policy · Terms of Use · Contact