Cisco: Job losses in the IT industry will hit $7.6B by 2022

Cisco is preparing to lay off 1,200 IT employees, according to a memo from chief executive officer John Chambers.

The layoffs will be in Cisco’s main Internetworking division, which encompasses Cisco Systems, Cisco’s networking business, and Cisco’s data center business, according the memo.

It’s a significant drop from a year ago when the company announced a hiring spree.

Chambers said the company was “evaluating all options to support continued operations and growth.”

Chambers added that the company had “not had a significant impact” on its revenue growth, which is the backbone of Cisco’s business.

Cisco, which has more than 2,000 employees worldwide, had revenue of $10.9 billion for the year ended Dec. 31.

The company will make some savings in the coming months by shifting the majority of its operations to its own cloud-based technology, which would save about $4 billion in 2021.

The memo did not specify the specific cloud technology.

Chamber said Cisco will hire about 1,000 people for its new cloud-computing center in Irvine, California, which will open in 2021 and be built in partnership with the city of Irvine.

The Irvine facility will be used to house a new “digital workforce” and “enhance our global IT infrastructure,” the memo said.

Chanda said Cisco’s cloud-centric strategy would help it continue to grow the business while attracting more technology talent.

“Our ability to continue to innovate is a critical driver for Cisco’s future success,” Chambers said.

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