Cisco freezes hiring to cut costs by $2 bn

Cisco freezes hiring to cut costs by $2 bn
Comment E-mail Print Share
First Published: Mon, Nov 17 2008. 03 51 PM IST
Updated: Mon, Nov 17 2008. 03 51 PM IST
PTI
New Delhi: Networking giant Cisco Systems today said it has frozen the hiring process and is adopting a wait and watch policy due to the global slowdown besides cutting costs up to $2 billion through various means.
“As we have earlier said, we have a hiring freeze... Looking at the present scenario, we will not be laying off people,” Cisco Systems Executive Vice-President and Chief Globalisation Officer Wim Elfrink told reporters on the sidelines of the World Economic Forum’s India episode.
Elfrink added, Cisco is adopting a wait and watch policy of 6-8 weeks before taking any decisions.
It also plans to cuts costs up to $2 billion through measures like slashing travel costs.
“We plan to save up to $2 billion by cutting travel costs and other expenses in the current scenario,” he said.
Cisco, which has a 30% market share in the Unified Communications (UC) space, is looking at doubling it even as its competitors, Microsoft and Avaya spruce up their product offering.
“We have a share of 30% and will increase it to 60% in the long term. The focus will remain on emerging markets like India to give us the necessary growth,” he said.
The global market for UC is estimated to touch $48 billion by 2012. In India, the UC market is still nascent, at about $600 million. But is growing exponentially as the small and medium enterprise segment begins to understand the benefits of deploying UC solutions.
According to a forecast from Frost & Sullivan, the UC market in India is likely to exceed $1 billion by 2010.
Asked about its plans to enter the consumer segment, Elfrink said, “We are focusing on the consumer segment through a programme called connected homes, but it will be difficult for me to talk about the timeline”.
Comment E-mail Print Share
First Published: Mon, Nov 17 2008. 03 51 PM IST