Cisco is letting go of 6,000 employees due to poor performance in some emerging markets. Cisco CEO John Chambers explained the company’s current financial situation and the layoffs during a call with analysts on Wednesday. Chambers says that the difficult decision to get rid of thousands of employees had to be made in order for Cisco to stay above water given its poor sales record.
Chambers is confident Cisco will be leading the market in some of the areas where it is currently struggling, but cutting its workforce is apparently necessary to reach that goal.
“The market doesn’t wait for anyone. We are going to lead it, period,” says Chambers, “The ability to do that requires some tough decisions. We will manage our costs aggressively and drive efficiencies.”
Brazil and China have proven to be particularly difficult markets for Cisco, and the company’s latest financial reports show decreasing router sales in those countries. Chambers is attempting to move the blame away from Cisco and towards a generally unstable world market, though other companies are not experiencing the same sales drops.
Other tech companies, including Microsoft, have recently been laying off tens of thousands of employees as well, so there is a trend towards cutting costs throughout the tech industry.
Via [Digital Trends]