Cisco sees solid sales growth
Cisco CEO Chuck Robbins says recent redundancies are an unfortunate step needed to be taken
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.