|Chennai||Rs. 28730.00 (1.13%)|
|Mumbai||Rs. 29740.00 (-0.13%)|
|Delhi||Rs. 29200.00 (0%)|
|Kolkata||Rs. 29350.00 (0%)|
|Kerala||Rs. 28000.00 (0%)|
|Bangalore||Rs. 28400.00 (0%)|
|Hyderabad||Rs. 28470.00 (-0.11%)|
Mumbai: In line with its global cost reduction exercise, Cisco India, a subsidiary of global network technology major Cisco Systems Inc, has put on hold all recruitments. Additionally the company will shut down for five days from December 29, 2008, to January 2, 2009.
In its earnings call after the first-quarter results, Cisco said it intended to bring down expenses for financial year 2009 by over $1 billion.
A Cisco India spokesperson told DNA Money the company is currently reviewing all discretionary spending, including headcount-related costs, travel/meeting expenses and reprioritising spending.
“We are pausing on all external hires and related recruiting costs. As part of this, all recruitment activities for the India development organisation have also been put on hold,” the spokesperson said.
Cisco employs 4,800 people in India and had talked of an aim to have a 10,000 on rolls by 2012 here.
The goal was to earn 5% of its global revenues and carry out 50% of its core R&D work from India by that year.
“As part of this (cost-reduction) effort, we will also implement a year-end shutdown of the US-Canada theatre from December 29, 2008, through January 2, 2009 (note that January 1 is already a holiday). There will be some exceptions for targeted business-critical teams including technical assistance services and channel partner and customer product ordering services,” a message posted in the Cisco Inc’s website said.
“We are seeing customers, not just in the financial, automotive, or retail sectors, but across most of our enterprise industries, facing what they view as a very challenging business environment,” Cisco chairman and CEO John Chambers said early this month.
The company has adopted the decision to shut down operations after more than a decade.
Cisco used to close operations for cost cutting in its initial years in the 1990s.
Experts suggest decision to shut down operations is more prudent than cutting headcount which scores of others firms are currently engaged in. Recently IT major US based Hewlett-Packard, too, had announced its decision to shut shop for a week this year.
Cisco provides software, hardware and network solutions to companies. In India it has strategic partnerships with major IT firms like TCS, Infosys, Wipro, Satyam, HCL etc.
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