Cisco Cuts More Jobs—This Time in the Cloud

Cisco Systems laid off about 60 people this week, including the bulk of employees that came to the company via its acquisition of two cloud computing firms, Metacloud in 2014 and Piston Cloud the following year, according to two people close to the company.

The layoffs reflect Cisco’s shift away, under CEO Chuck Robbins, from operating its own public cloud services, in competition with firms like Amazon Web Services, toward selling software and hardware that connects corporate data centers with public clouds. Cisco’s partnership with Google Cloud unveiled last month showed how Cisco is now looking to work with public cloud services rather than compete with them.

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Legacy hardware makers have struggled to adapt to the world of cloud computing, where more customers store data and run software applications in massive data centers managed by Amazon, Microsoft or Google, each of which spends billions per year on that infrastructure. That migration meant that companies bought less hardware for their own data centers.

Cisco’s aborted public cloud service was a response to Amazon’s looming dominance.

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