Cisco Systems is cutting staff.
In what has become something of a summer tradition, the San Jose-based internet backbone company is cutting 5,500 workers, or about seven percent of its workforce.
It’s a bit of a surprise this time around, as Cisco is on something of a tear. Earnings numbers have been strong lately, and shares of Cisco stock (CSCO) are at 5-year highs.
But, the industry is changing, and Cisco, one of the giants of Silicon Valley, has to change as well. According to Kris Lahiri, Co-Founder of Egnyte, a cloud-based file sharing software company, “It’s a large number, but it shows a transition in their strategy.”
As I write this, investors are not too shocked with the layoff number; Cisco shares are holding fairly steady in after hours trading.
Scott tracks tech on Twitter: @scottbudman