IT giant Cisco intends to cut 14,000 jobs, almost 20% of its global workforce, the technology website CRN reported.
According to the report, while these large-scale layoffs will only be announced in the next few weeks, Cisco has already offered some of its employees generous retirement packages.
This dramatic decision had followed the company recent strategic decision to focus on software, rather than hardware. As Cisco reported this summer, in the past few years it has laid off tens of thousands of jobs worldwide.
A source in Cisco said that the layoffs are global, and any comment on the number employees which are seemingly to be axed in Israel would be irresponsible, because no such job cuts have been decided on so far.
Nevertheless, estimates are that Israel will be affected less by the layoffs, and that they will certainly not amount to 300-400 job cuts.
Estimates are that Cisco's Israel operations will also be hit by these layoffs. The company currently has 1,600 employees in Israel, after extensive layoffs in 2014. Cisco's Israel operations are based, among other things, on its strategic acquisition of NDS for $5 billion in 2012.
So far, Cisco has invested $7 billion in acquisitions, direct and indirect investments in Israel. It has acquired 11 Israeli firms and invested in more than 30 startup companies and venture capital funds.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2016
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