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Thomas Nye 2016-08-17

The reduction beginning this quarter renews a pattern of midsummer moves to shed costs and make room to hire employees with new talents.

The job cuts, disclosed with its fiscal fourth-quarter financial results, mark the most dramatic move yet by Chief Executive Chuck Robbins, who a year ago assumed a position held for two decades by John Chambers, who remains the company s chairman.

The San Jose, Calif.-based company said it would reinvest the savings from the job cuts into businesses that it expects to grow, including its own software and service offerings.

Cisco has long held a dominant share of sales of the routing and switching equipment used to funnel data over the internet and between computers in data centers.

Though the company has diversified its business significantly, those two hardware categories remain its largest sources of revenue, and their sales have been slowing lately.

Over all, Cisco said its fiscal fourth-quarter profit rose 21% on a 1.6% revenue drop as the company tightened expenses in a variety of areas.

collect
0
William Mulcahy 2016-08-18
img

Cisco plans to cut workforce by seven per cent in a restructuring that also includes more focus on areas such as the IoT, security, collaboration, next-generation data center and the cloud.

yesterday was the information that Cisco would reduce the workforce by 14 000 people.

Quite as bad becomes it's not - but Cisco plans to reduce the workforce by seven per cent.

this means that The 5500 Ciscoanställda will lose their jobs – and it will cost the company about $ 700 million.

It notifies the company of the day, writes IDG News.

the Cuts will hit some of Cisco's smaller and more mature business areas, where the long-term growth is not considered to be strong.

collect
0
Brandon Gaither 2016-09-28
img

View photosMoreThe logo of Dow Jones Industrial Average stock market index listed company Cisco is seen in San Diego, California April 25, 2016.

MEXICO CITY Reuters - U.S. networking equipment maker Cisco Systems Inc plans more than $4 billion worth of expansion in Mexico between 2016 and 2018, the Mexican government said on Tuesday.

Cisco's Chief Executive Officer Chuck Robbins made the announcement during a meeting with Mexican President Enrique Pena Nieto, the government said in a statement.

The expansion would boost output in Mexico of products ranging from routers, servers, switches and wireless access points, as well as spur the creation of 270 jobs and 77 indirect jobs, the government said.

It was unclear how much of the sum announced had already been set out in the company's plans for the country.

collect
0
David Cox 2017-10-23
img

Cisco are expected to close a deal on their takeover of BroadSoft by Monday.

Cisco plans to continue its successful run of investments this year by investing in US company BroadSoft.

Rumours emerged that Cisco is looking to take over the US Telecommunications Software Company BroadSoft, for an estimated value of $2bn, according to sources from Reuters.

Earlier this year in August BroadSoft was rumoured to be looking into a sale of the company, and best known for its cloud and communications services to businesses.

BroadSoft, based in Gaithersburg in Maryland, offers software and services that give mobile and cable service operators the ability to offer inclusive communications over their networks.

Additionally, the company’s cloud and communication services are delivered to around 80 countries worldwide.

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0
Phillip Willis 2016-08-18
img

Cisco plans to eliminate 5,500 jobs

Cisco Systems is eliminating up to 5,500 jobs, representing 7% of its global workforce, the company has announced.

The job cuts, which will begin in the first quarter of 2017, are part of the company's restructuring plan enabling it to optimise its costs in lower growth segments and invest more in key areas such as security, IoT, data centres and cloud services.

The restructuring plan will claim $700m £536.4m towards severance, termination payments and associated costs.

Cisco expects about $325m to $400m of the charges to be addressed during the first quarter of 2017, and the remaining amount during the rest of the year.

The official announcement comes just after a report emerged revealing the company's plans to lay off 14,000 employees, representing 20% of its workforce.

collect
0
Issac Pierce 2018-05-01

Cisco just announced an agreement to acquire Accompany, which uses artificial intelligence to build databases of people and relationships at companies.

Founder and CEO Amy Chang has compared the product to a digital chief of staff or personal assistant, giving executives the context they need before conversations and meetings.

Cisco plans to incorporate Accompany technology into its collaboration products, for example by introducing company and individual profiles into Webex meetings.

Cisco says it will pay $270 million in cash and stock in the deal.

The company probably didn’t have to search too hard to find Accompany, since Chang (who previously served as the head of product for Google’s ad measurement and reporting) has been on Cisco’s board of directors since October 2016.

As part of the transaction, she’s resigning from the board, effective immediately.

collect
0
David Clary 2019-08-07
img

Cisco plans to bring voice transcription to its Webex meeting tools with the acquisition of Voicea, part of a wider initiative to add AI capabilities to its collaboration software.

Cisco today announced it would acquire the Mountain View, CA.-based company for an undisclosed amount.

Voicea’s core product is its Enterprise Voice Assistant (EVA), a speech recognition tool that transcribes audio, providing highlights and action points for participants to follow up on.

The aim is to combine Voicea’s technology with Cisco’s Webex meeting tools, including its Webex Assistant voice assistant, which was developed after the $125 million acquisition of conversational AI startup MindMeld in 2017.

Webex Assistant lets users start video meetings, check room availability and control conference room hardware using voice commands.

“The possibilities are powerful through combining transcription (EVA) and conversational AI (Webex Assistant) engines,” Sri Srinivasan, senior vice president and general manager of Webex, said in a blog post.

collect
0
Lawrence Bowman 2020-07-30

FILE - In this June 6, 2019, file photo Amazon CEO Jeff Bezos speaks at the the Amazon re:MARS convention in Las Vegas. Two U.N. experts this week called for the U.S. to investigate a likely hack of Bezos' phone that could have involved Saudi Arabian Crown Prince Mohammed bin Salman. A commissioned forensic report found with “medium to high confidence” that Bezos' phone was compromised by a video MP4 file he received from the prince in May 2018. (AP Photo/John Locher, File)

  • Documents made public Wednesday as part of a Congressional antitrust hearing give insight into the concerns of tech's most powerful CEOs leading up to game-changing acquisitions.
  • Amazon, Facebook and Google all made big purchases of startups whose technology, the documents reveal, their teams found to be lacking.
  • Instead, the deals got done because the companies feared losing market share or wanted a leg up in a new sector. 
  • Visit Business Insider's homepage for more stories.

If you're looking to sell your tech startups to one of the big tech giants, an intimidating reputation will take you further than good technology. 

Market position, "land grabs," and winning were all top considerations for the CEOs at Amazon, Facebook and Google ahead of major acquisitions, according to emails and instant messages made public on Wednesday as part of Congressional hearing over possible anticompetitive practices in tech.

The documents give unique insight into the thought processes of these powerful (and often rash) men on the eve of big purchases, which over time have proven to completely rewrite the technology landscape. Ultimately, the messages show, none of these companies made their most high-profile acquisitions because of the quality of the technology.

Google, which acquired YouTube for $1.65 billion in October 2006, considered the video streaming website a threat because it meant people were searching for things away from Google.com, the documents show.

Ultimately, its product was less important to Google than its position as a top video startup. In one email, Peter Chane, who founded and oversaw Google Video, said that YouTube's "systems wouldn't be valuable to us" and described its content quality as "worse than ours." But Google's Jeff Huber defended the talks and wrote that at the very least, opening M&A talks would raise the price tag for Google's competitor Yahoo if it wanted to acquire YouTube itself.

Plus, Huber said, YouTube was located a quick drive away from Google in Palo Alto. It might seem like an arbitrary advantage, but it sure worked out for YouTube

Perhaps the most insecure emailer was Amazon, which spent months trying to "undercut" Diapers.com before acquiring its parent company Quidsi for $545 million in November 2010. Emails show extensive deliberations, referred to as the "Plan to Win," which addressed Amazon's internal strategy to price match and "meet or beat" Diapers.com's order time cut off of 6 p.m. (The plan also required Amazon to fix a bug on its website: a widget that gave shoppers to option to browse "used" diapers.)  

In 2017, Amazon shuttered its Quidsi properties altogether. In other words, its plan was a success.

Bezos was absent from the Diapers.com emails, but played a more active role fretting over market dominance in documents surrounding Amazon's acquisition of doorbell camera startup Ring for $1 billion in March 2018. 

"To be clear, my view here is that we're buying market position — not technology. And that market position and momentum is highly valuable," Bezos wrote to Amazon Vice President Dave Limp on December 15, 2017, according to the documents.

Bezos email 1

Others on Bezos's team made clear that Ring didn't have much to offer that Amazon couldn't build itself.

"They don't have any interesting hardware secret sauce either in IP, manufacturing process, or people," vice president Robert Stites wrote to Limp on November 1, 2017, in an email arguing against the deal. "I'm not inclined unless our intent is to just benchmark pricing." 

Amazon email 2

Facebook CEO Mark Zuckerberg took a similar attitude leading up to its acquisition of Instagram for $1 billion in April 2012. Instagram, then a small but growing photo-sharing app, came into Zuckerberg's line of sight as he fretted over how long users spent on Facebook's mobile app, according to the documents. Every second spent on Instagram's app was a second not spent looking at Facebook.

"Instagram is eating our lunch. We should have owned this space but we're losing quite badly," an unnamed Facebooker wrote in a redacted IM transcript from January 2012.

"Not losing strategic position in photos is worth a lot of money," Mike Shroepfer, Facebook's technology chief, wrote to Zuckerberg on March 9, 2012, ahead of the deal.

Facebook emails 1

Once the acquisition went through, Zuckerberg was more direct about his reason for buying Instagram: it was stiff competition. "One thing about startups though is you can often acquire them," Zuckerberg wrote on April 9, 2012

One email of particular interest during the hearing on Wednesday came from Facebook's chief financial officer, David Wehner, in a February 2014 thread about Facebook's $19 billion WhatsApp acquisition earlier that month. 

"A big concern expressed it that we're going to spend 5-10% of our market cap every couple of years to shore up our position," Wehner wrote in defense of the deal. "I hate the word 'land grab' but I think that is the best convincing argument and we should own that. ... We are being aggressive about seizing that opportunity as it is transforming the communications landscape."

Facebook emails 2

(Apple CEO Tim Cook was also part of the hearing, though the company's M&A history was not a big concern for lawmakers.)

Consolidation is nothing new in the land of tech, and in many cases strategic acquirers get lauded for the wisdom behind deals that increase their power and eliminate risk. But not every acquisition is about dominance or eliminating obstacles. 

When the $194 billion enterprise tech giant SAP acquired Qualtrics for $8 million in 2018, SAP added a top-of-the-line market research and data analysis product to its offerings.

If SAP saw market research as its only growth opportunity, that would be one thing. But the point of the acquisition wasn't to make SAP the market leader in that sector. It was to give SAP more ground in its competition against Oracle and Microsoft to dominate in cloud software more broadly.

Then there are deals like Cisco's May acquisition of ThousandEyes, a network security startup whose technology Cisco plans to tie into its existing products. Cisco bought the company because it made more sense than developing its own tool that could do the same thing.

This is all to say: it's possible for a large tech company to acquire a startup for reasons other than fear of the underdog. But if these messages from executives at Facebook, Amazon, and Google show anything, it's that making tech's mega giants feel insecure is a great way to go from startup founder to multi-millionaire. 

SEE ALSO: When colleagues accused Mark Zuckerberg's personal security chief of racism and harassment, the family said there was no evidence. In sworn declarations, 3 workers said otherwise.

Join the conversation about this story »

NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence

collect
0
Thomas Nye 2016-08-17

The reduction beginning this quarter renews a pattern of midsummer moves to shed costs and make room to hire employees with new talents.

The job cuts, disclosed with its fiscal fourth-quarter financial results, mark the most dramatic move yet by Chief Executive Chuck Robbins, who a year ago assumed a position held for two decades by John Chambers, who remains the company s chairman.

The San Jose, Calif.-based company said it would reinvest the savings from the job cuts into businesses that it expects to grow, including its own software and service offerings.

Cisco has long held a dominant share of sales of the routing and switching equipment used to funnel data over the internet and between computers in data centers.

Though the company has diversified its business significantly, those two hardware categories remain its largest sources of revenue, and their sales have been slowing lately.

Over all, Cisco said its fiscal fourth-quarter profit rose 21% on a 1.6% revenue drop as the company tightened expenses in a variety of areas.

Brandon Gaither 2016-09-28
img

View photosMoreThe logo of Dow Jones Industrial Average stock market index listed company Cisco is seen in San Diego, California April 25, 2016.

MEXICO CITY Reuters - U.S. networking equipment maker Cisco Systems Inc plans more than $4 billion worth of expansion in Mexico between 2016 and 2018, the Mexican government said on Tuesday.

Cisco's Chief Executive Officer Chuck Robbins made the announcement during a meeting with Mexican President Enrique Pena Nieto, the government said in a statement.

The expansion would boost output in Mexico of products ranging from routers, servers, switches and wireless access points, as well as spur the creation of 270 jobs and 77 indirect jobs, the government said.

It was unclear how much of the sum announced had already been set out in the company's plans for the country.

Phillip Willis 2016-08-18
img

Cisco plans to eliminate 5,500 jobs

Cisco Systems is eliminating up to 5,500 jobs, representing 7% of its global workforce, the company has announced.

The job cuts, which will begin in the first quarter of 2017, are part of the company's restructuring plan enabling it to optimise its costs in lower growth segments and invest more in key areas such as security, IoT, data centres and cloud services.

The restructuring plan will claim $700m £536.4m towards severance, termination payments and associated costs.

Cisco expects about $325m to $400m of the charges to be addressed during the first quarter of 2017, and the remaining amount during the rest of the year.

The official announcement comes just after a report emerged revealing the company's plans to lay off 14,000 employees, representing 20% of its workforce.

David Clary 2019-08-07
img

Cisco plans to bring voice transcription to its Webex meeting tools with the acquisition of Voicea, part of a wider initiative to add AI capabilities to its collaboration software.

Cisco today announced it would acquire the Mountain View, CA.-based company for an undisclosed amount.

Voicea’s core product is its Enterprise Voice Assistant (EVA), a speech recognition tool that transcribes audio, providing highlights and action points for participants to follow up on.

The aim is to combine Voicea’s technology with Cisco’s Webex meeting tools, including its Webex Assistant voice assistant, which was developed after the $125 million acquisition of conversational AI startup MindMeld in 2017.

Webex Assistant lets users start video meetings, check room availability and control conference room hardware using voice commands.

“The possibilities are powerful through combining transcription (EVA) and conversational AI (Webex Assistant) engines,” Sri Srinivasan, senior vice president and general manager of Webex, said in a blog post.

William Mulcahy 2016-08-18
img

Cisco plans to cut workforce by seven per cent in a restructuring that also includes more focus on areas such as the IoT, security, collaboration, next-generation data center and the cloud.

yesterday was the information that Cisco would reduce the workforce by 14 000 people.

Quite as bad becomes it's not - but Cisco plans to reduce the workforce by seven per cent.

this means that The 5500 Ciscoanställda will lose their jobs – and it will cost the company about $ 700 million.

It notifies the company of the day, writes IDG News.

the Cuts will hit some of Cisco's smaller and more mature business areas, where the long-term growth is not considered to be strong.

David Cox 2017-10-23
img

Cisco are expected to close a deal on their takeover of BroadSoft by Monday.

Cisco plans to continue its successful run of investments this year by investing in US company BroadSoft.

Rumours emerged that Cisco is looking to take over the US Telecommunications Software Company BroadSoft, for an estimated value of $2bn, according to sources from Reuters.

Earlier this year in August BroadSoft was rumoured to be looking into a sale of the company, and best known for its cloud and communications services to businesses.

BroadSoft, based in Gaithersburg in Maryland, offers software and services that give mobile and cable service operators the ability to offer inclusive communications over their networks.

Additionally, the company’s cloud and communication services are delivered to around 80 countries worldwide.

Issac Pierce 2018-05-01

Cisco just announced an agreement to acquire Accompany, which uses artificial intelligence to build databases of people and relationships at companies.

Founder and CEO Amy Chang has compared the product to a digital chief of staff or personal assistant, giving executives the context they need before conversations and meetings.

Cisco plans to incorporate Accompany technology into its collaboration products, for example by introducing company and individual profiles into Webex meetings.

Cisco says it will pay $270 million in cash and stock in the deal.

The company probably didn’t have to search too hard to find Accompany, since Chang (who previously served as the head of product for Google’s ad measurement and reporting) has been on Cisco’s board of directors since October 2016.

As part of the transaction, she’s resigning from the board, effective immediately.

Lawrence Bowman 2020-07-30

FILE - In this June 6, 2019, file photo Amazon CEO Jeff Bezos speaks at the the Amazon re:MARS convention in Las Vegas. Two U.N. experts this week called for the U.S. to investigate a likely hack of Bezos' phone that could have involved Saudi Arabian Crown Prince Mohammed bin Salman. A commissioned forensic report found with “medium to high confidence” that Bezos' phone was compromised by a video MP4 file he received from the prince in May 2018. (AP Photo/John Locher, File)

  • Documents made public Wednesday as part of a Congressional antitrust hearing give insight into the concerns of tech's most powerful CEOs leading up to game-changing acquisitions.
  • Amazon, Facebook and Google all made big purchases of startups whose technology, the documents reveal, their teams found to be lacking.
  • Instead, the deals got done because the companies feared losing market share or wanted a leg up in a new sector. 
  • Visit Business Insider's homepage for more stories.

If you're looking to sell your tech startups to one of the big tech giants, an intimidating reputation will take you further than good technology. 

Market position, "land grabs," and winning were all top considerations for the CEOs at Amazon, Facebook and Google ahead of major acquisitions, according to emails and instant messages made public on Wednesday as part of Congressional hearing over possible anticompetitive practices in tech.

The documents give unique insight into the thought processes of these powerful (and often rash) men on the eve of big purchases, which over time have proven to completely rewrite the technology landscape. Ultimately, the messages show, none of these companies made their most high-profile acquisitions because of the quality of the technology.

Google, which acquired YouTube for $1.65 billion in October 2006, considered the video streaming website a threat because it meant people were searching for things away from Google.com, the documents show.

Ultimately, its product was less important to Google than its position as a top video startup. In one email, Peter Chane, who founded and oversaw Google Video, said that YouTube's "systems wouldn't be valuable to us" and described its content quality as "worse than ours." But Google's Jeff Huber defended the talks and wrote that at the very least, opening M&A talks would raise the price tag for Google's competitor Yahoo if it wanted to acquire YouTube itself.

Plus, Huber said, YouTube was located a quick drive away from Google in Palo Alto. It might seem like an arbitrary advantage, but it sure worked out for YouTube

Perhaps the most insecure emailer was Amazon, which spent months trying to "undercut" Diapers.com before acquiring its parent company Quidsi for $545 million in November 2010. Emails show extensive deliberations, referred to as the "Plan to Win," which addressed Amazon's internal strategy to price match and "meet or beat" Diapers.com's order time cut off of 6 p.m. (The plan also required Amazon to fix a bug on its website: a widget that gave shoppers to option to browse "used" diapers.)  

In 2017, Amazon shuttered its Quidsi properties altogether. In other words, its plan was a success.

Bezos was absent from the Diapers.com emails, but played a more active role fretting over market dominance in documents surrounding Amazon's acquisition of doorbell camera startup Ring for $1 billion in March 2018. 

"To be clear, my view here is that we're buying market position — not technology. And that market position and momentum is highly valuable," Bezos wrote to Amazon Vice President Dave Limp on December 15, 2017, according to the documents.

Bezos email 1

Others on Bezos's team made clear that Ring didn't have much to offer that Amazon couldn't build itself.

"They don't have any interesting hardware secret sauce either in IP, manufacturing process, or people," vice president Robert Stites wrote to Limp on November 1, 2017, in an email arguing against the deal. "I'm not inclined unless our intent is to just benchmark pricing." 

Amazon email 2

Facebook CEO Mark Zuckerberg took a similar attitude leading up to its acquisition of Instagram for $1 billion in April 2012. Instagram, then a small but growing photo-sharing app, came into Zuckerberg's line of sight as he fretted over how long users spent on Facebook's mobile app, according to the documents. Every second spent on Instagram's app was a second not spent looking at Facebook.

"Instagram is eating our lunch. We should have owned this space but we're losing quite badly," an unnamed Facebooker wrote in a redacted IM transcript from January 2012.

"Not losing strategic position in photos is worth a lot of money," Mike Shroepfer, Facebook's technology chief, wrote to Zuckerberg on March 9, 2012, ahead of the deal.

Facebook emails 1

Once the acquisition went through, Zuckerberg was more direct about his reason for buying Instagram: it was stiff competition. "One thing about startups though is you can often acquire them," Zuckerberg wrote on April 9, 2012

One email of particular interest during the hearing on Wednesday came from Facebook's chief financial officer, David Wehner, in a February 2014 thread about Facebook's $19 billion WhatsApp acquisition earlier that month. 

"A big concern expressed it that we're going to spend 5-10% of our market cap every couple of years to shore up our position," Wehner wrote in defense of the deal. "I hate the word 'land grab' but I think that is the best convincing argument and we should own that. ... We are being aggressive about seizing that opportunity as it is transforming the communications landscape."

Facebook emails 2

(Apple CEO Tim Cook was also part of the hearing, though the company's M&A history was not a big concern for lawmakers.)

Consolidation is nothing new in the land of tech, and in many cases strategic acquirers get lauded for the wisdom behind deals that increase their power and eliminate risk. But not every acquisition is about dominance or eliminating obstacles. 

When the $194 billion enterprise tech giant SAP acquired Qualtrics for $8 million in 2018, SAP added a top-of-the-line market research and data analysis product to its offerings.

If SAP saw market research as its only growth opportunity, that would be one thing. But the point of the acquisition wasn't to make SAP the market leader in that sector. It was to give SAP more ground in its competition against Oracle and Microsoft to dominate in cloud software more broadly.

Then there are deals like Cisco's May acquisition of ThousandEyes, a network security startup whose technology Cisco plans to tie into its existing products. Cisco bought the company because it made more sense than developing its own tool that could do the same thing.

This is all to say: it's possible for a large tech company to acquire a startup for reasons other than fear of the underdog. But if these messages from executives at Facebook, Amazon, and Google show anything, it's that making tech's mega giants feel insecure is a great way to go from startup founder to multi-millionaire. 

SEE ALSO: When colleagues accused Mark Zuckerberg's personal security chief of racism and harassment, the family said there was no evidence. In sworn declarations, 3 workers said otherwise.

Join the conversation about this story »

NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence