Cisco lays off 200 people at its subsidiary NDS India

Venkatesh Ganesh Bangalore | Updated on September 09, 2014


Cisco has given out pink slips to 200 engineers working for NDS India, one of its subsidiaries, as a part of its global restructuring efforts.

Further, this exercise has been carried out in three phases, spread across the last two quarters, according to sources inside the company who did not wish to be named as they are not authorised to speak to the media. Cisco, which acquired NDS in 2012, had 1,600 engineers at the time of the acquisition.

The reason for this restructuring has to do with sagging NDS business. NDS makes software for TV set-top boxes (STBs) for cable TV providers. STBs are expected to grow slowly at a CAGR of 2.14 per cent from 2014-18, according to TechNavio's analysts.

When contacted, a Cisco spokesperson said that the company does not comment on India-specific workforce but pointed to transcripts from the recently concluded conference call last month where Cisco CEO, John Chambers said: “Consistent with our disciplined approach to growing resources in important areas while managing costs, when Frank Calderoni (the company's Executive Vice-President and CFO) details guidance later in the call, we will announce our plans to do a limited restructuring across several areas of our business.”

These actions are focussed on investing in growth, innovation, and talent, while managing costs and driving efficiencies, he said. Calderoni added that Cisco will be taking restructuring actions in FY15 and these actions will impact up to 6,000 employees, which is approximately 8 per cent of its global workforce.

However, both of them added that Cisco will reinvest a substantial portion of cost savings from this into growth, innovation and hiring talent. Cisco India does not give out its total employee headcount.

Another employee added that there were talks of hiring talent with different skillsets with an understanding of technologies in STBs and mobility, rather than pure play knowledge of STB, which is a challenge in the existing workforce.

Published on September 09, 2014

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