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Cisco dismisses 7% of its workforce

Cisco technology firm announced Thursday it will lay off nearly 7% of its workforce, 5,500 people, as part of a reorganization in which the company seeks to focus more on software and less on hardware.

The company based in San Jose (California, USA) specializes in manufacturing, sales, maintenance and consulting for telecommunications equipment.

The announcement coincided with the publication today of the results of its last fiscal year, which ended in late July and in which Cisco reported earnings of 10,700 million, 20% more than in the previous year.

"The market and our customers require Cisco shows determination to move faster and generate more innovation than ever," the company said in a statement.

The company said that to achieve this greater flexibility and innovative spirit will promote a restructuring which will seek to focus on safety, the next generation of data centers, cloud and internet of things, as the growing trend is known to connect objects of daily life to the Internet.

"The restructuring will eliminate 5,500 jobs, representing about 7% of our global workforce and begin to implement that plan in the first fiscal quarter of 2017," which began earlier this month of August, Cisco said.

The company based in San Jose plans to invest the savings from staff cuts in areas identified as priority for the future of the company.

Cisco said it plans a charge of up to $ 700 million associated with compensation and layoffs.

The reversal comes just one year after Chuck Robbins Cisco assume the reins as the new CEO of the company, after two decades of John Chambers in office.

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