https://www.bizjournals.com/triangle/news/2018/11/15/cisco-ceo-on-latestlayoffs-its-an-unfortunate-step.html?ana=yahoo&yptr=yahoo
Cisco CEO Chuck Robbins offered during Wednesday's earnings call new details on the technology firm’s latest round of layoffs – telling analysts it’s about “the customer experience transition.”
Cisco, Research Triangle Park’s second largest employer, confirmed cuts earlier this month – though the company didn’t detail the Triangle impact.
“It’s an unfortunate step that we needed to take in order to expeditiously get to where we need to be, relative to dealing with the renewals and the lifecycle that our customers are going to want us to drive with them in this new portfolio,” he said.
“I’ve been very clear with our employees,” he added. “We’ve been very open and transparent with them about what’s going on.”
Robbins took over as CEO in 2015 from his predecessor, John Chambers.
Robbins has his own connections to the Triangle, as he holds a bachelor’s degree in mathematics with a computer science concentration from UNC-Chapel Hill. And, according to the state, he’s on track to continue investments Chambers started in the RTP site. In 2014, Cisco announced plans to create 550 new jobs in exchange for incentives worth nearly $13 million over 12 years.
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A spokesman for the N.C. Department of Commerce said recently that Cisco is 100 percent compliant with the performance milestones required to receive the grant funds. So far, Cisco has received three disbursements from the state, totaling more than $2.5 million. And the company continues to hire locally in what it calls "key areas," with more than 3,800 open positions around the globe.
Its contributions to North Carolina extend outside its campus. On Wednesday, Cisco and Gov. Roy Cooper’s Office announced the launch of CyberVetsUSA, a program to train 200 veterans in North Carolina in cybersecurity. The partnership was formed to address the over 18,000 available IT jobs in North Carolina – 10 percent of which require cybersecurity skills.
But, even as it makes investments, the company has confirmed other layoff rounds in recent years as it transitions away from legacy businesses. In addition to the recently confirmed cuts, Cisco disclosed plans to cut 1,100 jobs companywide in 2017. And, in 2016, the firm announced a plan that execs said could impact 5,500 jobs globally.
Cisco has about 5,000 employees in the Triangle and is second only to IBM in RTP headcount.
Cisco shares were trading up about 4 percent before the bell Thursday, at $46.10. Late Wednesday, the firm reported nearly $13.1 in billion in first quarter revenue. And its security segment, which has a sizable presence at its RTP campus, accounted for $651 million.