Multinational conglomerate, Cisco has laid off a few tens of employees in India, from the workforce of 11,000 employees as part of a global realignment. Cisco’s business has been a good contributor to the Indian economy. In 2017-18, its revenue had crossed the $1 Bn milestone in India.
While the firm seems to be doing well, it is transforming and driving more innovation. As the firm relooks at realigning its resources, a few jobs in the country gets affected too. The realignment drive has been initiated across the globe for Cisco. Jobs in California has also got affected. The technology firm has laid off 397 employees in San Jose and 91 in Milpitas.
Commenting on these layoffs, the company stated, “It’s important that we make decisions to continually ensure that our investments and resources are aligned with strategic growth areas of the business and customer demands.”
While there have been layoffs, the company is working closely with the impacted employees and trying to match them to the wide variety of roles currently open across Cisco.
Another, US-listed IT company, Cognizant has been laying off employees in India. Earlier, the firm had offered 300 top executives voluntary separation in order to keep its pyramid lean. Now, it is said to be readying another round of layoffs, expected to number a few hundred, as part of its strategy to cut costs.
Interestingly, both these firms have reported good earnings. Cognizant’s Q2 revenue came in at the higher end of its guided range and beat consensus EPS estimates. Cisco reported fourth quarter revenue of $13.4 Bn, for the period ended July 27, 2019.
However, both these forms are looking to restructure and redistribute their costs to boost growth and lower costs.
Considering that these IT firms will continue the process of realigning their resources for another year, more jobs can get affected. Only time will tell how many more layoffs shall follow.
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