Cisco, a well-known American network solutions provider, will launch a layoff plan in the near future. The layoffs plan to abolish 9% of the jobs involving 7,100 people.
Reasons for the abolition of Cisco attributed it to the negative impact of the coronavirus epidemic, which severely affected Cisco’s performance and revenue, so it had to cut staff and reorganize to streamline its business.
At the same time, Cisco is ordered to pay $1.9 billion in a U.S. patent lawsuit, which is also the highest compensation case in the US patent litigation so far.
The loss of the patent infringement lawsuit may worsen the situation for Cisco, which is severely affected by the epidemic, and Cisco has neither admitted nor denied the rumors of this layoff.
As a well-known network solution provider in the industry, Cisco mainly provides various network-related services, including network security and hardware such as routing and switches.
As early as March of this year, there have been rumors that Cisco will lay off all employees at the Shanghai R&D center. However, Cisco officials soon denied the abolition of the Shanghai R&D center. Cisco said at the time that network-related news was all rumors, and the company had no plans to lay off staff.
Cisco did not clearly state the layoffs reported by the media. In fact, it neither acknowledged the layoff plan reported by the media but did not deny the news.
Cisco said it will increase investment in key business areas in the next few months, which will improve customer satisfaction and profitability and reduce investment in other businesses.