Cisco Job Cuts a Needed Unwinding: Kedrosky

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Aug. 15 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky examines Cisco's announcement of 4,000 job cuts and how smaller, leaner companies are impacting their business and forcing changes. He speaks on Bloomberg Television's "Bloomberg Surveillance."

You look at this and look at his chin -- mr.

Chambers grambling, it says a lot about big tech.

What does big tech do in a soggy, global economy?

Not much.

Laypeople off.

You alluded to this earlier, they are a host of acquisitions dating back to the early 1990's. some of the should have happened a long time ago but was masked by the rising tide in data network.

It really had to come unwound because this company was truly an and wielding automation all of these acquisitions.

The deeper problem is is facing a number of smaller competitors.

So you have these forces working at once.

Was set out to me was scott galloway looked at the company's come to the management and said it is a good example of old tech everything new tech and changing the playbook.

Are there any lessons for old technology companies either positive or negative?

What they should or should not do from the ocis co around?

I do not think they are particularly good example of all.

I think they're very slow.

Most of the problems have been systematic and been there for some time.

He is been loath to do with it for a number of different reasons.

When you build up through acquisitions, these problems should be dealt with much more quickly.

And technology, those people are everywhere.

Guest host for the hour is gilbert harrison.

Merger and acquisition retail guy.

When you hear about the struggles they are facing, how reminiscence is it of retail and changing things with gdp growth so sluggish?

Growth really.

You have to go with the punches and if you do not change, you are dead.

When you hear what cisco spending the money and buying new companies coming is it nimble enough to play off against the smaller competitors?

Pulte i did not really think so.

I have a long debates yesterday with a friend who has a large position in them.

It is no longer a growth story anymore.

A wonderful study showing tech companies that fall below 8% year over year growth as a general world never become a resurgent again come up with apple as the rare exception.

Should john chambers x that?

-- exit?

God, yes.

Betty liu will ask that question of mr.

Chambers this

This text has been automatically generated. It may not be 100% accurate.

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