Cisco Systems Inc. (Nasdaq: CSCO) will fire dozens employees in Israel, as part of the firing of 4,000 employees worldwide, 5% of its workforce. Cisco Systems has 2,000 employees in Israel, a fraction of its global workforce.
Cisco Systems Israel declined to comment on the report.
There have been several waves of layoffs at Cisco Systems Israel in the past, but the present wave appears to be smaller. Most of the layoffs will be at activities of former NDS, which is Cisco Systems Israel's largest operation. The layoffs will reportedly affect headquarters and logistics staff.
NDS, a developer of pay TV and video content encryption solutions, was acquired by Cisco for $5 billion in early 2012. Although NDS had long since ceased to be an Israeli-owned company, most of its operations are in the country, where it has 1,200 employees.
The acquisition of NDS turned Cisco into one of the five biggest foreign high-tech companies in Israel. Cisco said that the acquisition was part of its plan to strengthen its Israeli center with information security solutions. A promise by Cisco CEO John Chambers during a visit to Israel in June, that the company planned to hire IT security personnel, has not yet materialized.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2013
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