Cisco sees solid sales growth

Cisco CEO Chuck Rob­bins says re­cent re­dun­dan­cies are an un­for­tu­nate step needed to be taken

Channel Middle East - - Front Line -

Af­ter re­port­ing solid sales and net in­come growth for its first fis­cal quar­ter, Cisco CEO Chuck Rob­bins has said the re­cent round of lay­offs at the net­work­ing giant are needed as the com­pany re­struc­tures it­self into a soft­ware and sub­scrip­tion-cen­tric com­pany.

“First of all, it’s not an [op­er­at­ing ex­penses] re­duc­tion [is­sue]. I’ve ac­tu­ally taken this is­sue and talked head-on with our em­ploy­ees about what’s go­ing on right now very di­rectly. The ma­jor­ity of this is part of the cus­tomer ex­pe­ri­ence tran­si­tion,” said Rob­bins dur­ing Cisco’s first quar­ter earn­ings call with an­a­lysts. “If you look at what we’ve done rel­a­tive to our soft­ware port­fo­lio and how we’re build­ing out th­ese of­fers for our cus­tomers, any great soft­ware com­pany has a very suc­cess­ful cus­tomer ex­pe­ri­ence or­gan­i­sa­tion.”

Cisco laid off at least 460 staff mem­bers with many of the lay­offs in its Cus­tomer Ex­pe­ri­ence busi­ness.

Rob­bins said Cisco hired Sales­force and Mi­crosoft veteran Maria Martinez ear­lier this year to cre­ate a new strat­egy for how the com­pany needs to be struc­tured for the fu­ture. Martinez joined the com­pany this year with a $13m new hire cash bonus and a salary of $675,000.

Cisco’s CEO said the lay­offs are “an un­for­tu­nate step we needed to take in or­der to ex­pe­di­tiously get to where we need to be rel­a­tive to deal­ing with re­newals and the life­cy­cle that our cus­tomers are go­ing to want.”

Rob­bins says Cisco hired Maria Martinez ear­lier this year to cre­ate a new strat­egy.

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