Cisco System is reported to be laying off around 14,000 employees due to changes in company focus.
Editor’s Remarks: Cisco is transitioning from a predominantly technology hardware company to focusing on softwares. This would follow Intel, who decided to cut 12,000 jobs in April. These numbers equal about 20% of Cisco’s workforce and 11% of Intel’s. These are all part of Cisco CEO Chuck Robbins’ plan to convert Cisco into a software company with a massive developer community. Cisco will hope its wireless security and datacenter makes up for it being late into the cloud market. The biggest concern for its clients will be the transition fees and that should be Cisco’s as well.
What to watch: Cisco, U.S. Hardware & Equipment Index, Intel