Cisco to Cut 6,000 Jobs

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Aug. 13 (Bloomberg) – Bloomberg’s Peter Burrows reports on Cisco Systems cutting 6,000 jobs and whether CEO John Chambers is running out of time. He speaks on “Bloomberg West.” (Source: Bloomberg)

Who covers cisco.

Obviously the yost were not expected.

Why now?

There are probably people relieved because it was as high as 20% rumored.

Now i think they are seeing emerging markets a lost -- a lot worse than they thought.

They are also having issues with phone carriers, about a third of their business, a very big market.

There is a whole lot of change ahead of this company.

Phone companies are struggling.

They need to become more like google and facebook and change the infrastructure so it is less about telecom equipment that has to be tested and proven out over 3-5 years and be more like google and can crank out software eric quickly.

So it is all about software and not hardware.

All about software.

That is the transition they will have to get through.

This kind of happens every year or has happened the past several years, they buy a lot of companies as well.

How does it all add up?

They are adding talent at the same time.

You have to feel for them.

The stock has been stuck in the range for 10 years.

They made a lot of changes but the market is moving so fast.

There is a lot moving through the cloud.

It feels like the changes are faster.

The ceo moving toward retirement becoming more up runt about the plans.

Is it a sign a new -- needs new leadership and blood?

No one is really calling for that.

Most people feel like they are in the middle of the transition.

He is definitely a proven hand.

If there is a criticism it is maybe they have lost talent from people who are blessed because they were not becoming ceo.

That also argues that you may want to have a guy like him at the tiller.

He has been pretty outspoken about how the nra regulations have impacted the business.

How much of some of the things we are seeing is because of other companies have lost trust in american companies?

China was found 23% last year.

They spend more on r&d than cisco does.

While wabut there are other serious challengers.

A very small company just ipo to and grew sales 90% from year-over-year.

Cisco is kind of flat, down.

They have a lot of different challenges from a lot of different directions.

Will we see as strategy shift?

No.

he said how many different ways he is happy with his hand, likes the strategy that yields like they are making headway.

They are making headway with some of the new product lines and software defined networking products, software stuff but we are talking about one of the key businesses just hit 100 million, $47 billion company.

Going to take a while for that matters.

Fax shares are down.

-- shares are down.

Why is he not budging?

I think he is playing a long-term game.

Networks can change overnight.

Companies -- a phone company cannot change out infrastructure overnight.

It would take a long time.

That is i think one of the things that is really in their favor that is if there is a criticism is that it is not

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

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