Cisco is doing more than just laying off some 6,000 workers as part of a reorganization. the company also is switching up to 25,000 people in its routing and switching engineering group to two large work groups from individual teams.

The Business Insider reported just how big the reorganization is. Cisco confirmed it in a statement.

Cisco (Nasdaq: CSCO) operates its second largest corporate campus in RTP and employs some 4,700 people there. The company has some 74,000 workers.

Cisco’s Statement

“We will continue to make the business decisions and bold moves we need to make to secure our leadership position in the market going forward. Three years ago, we started our transformation and our solid results in Q4 and for FY14 reflect the good progress we have made to date. But we are not done. We are continuing to make the moves to drive more innovation, speed, agility and efficiencies in our business and move from selling boxes to selling solutions, architectures, solutions and outcomes,” Cisco said in an email provided to ZDnet.

“Earlier this summer, we brought our sales and engineering closer together. For example, the work we are doing in engineering to implement a DevOps and an Agile development model, the work we are doing to integrate our products and services sales teams into one solutions salesforce, and the work we are doing in services extending into new market opportunities. These are big moves that we expect big impact over time for us. It’s a different way of doing things that will allow us to be faster and even more responsive to our customers and the market.

“As announced on our August 13 earnings call, Cisco is conducting a limited restructuring across several segments of our business that will impact up to 6,000 roles or up to 8% of our global workforce. Technology disruption has never moved more quickly, requiring all companies to adapt and accelerate through change. We are taking action now to build for the future of cloud, security, virtualization, analytics, data center, IoE and collaboration. We will continue to invest in growth, innovation, and talent, while managing costs and improving efficiencies across our business. We are continuing to hire, especially in the areas that help our customers solve their biggest business problems.

“Of Cisco’s approximately 25,000 employees in the development organization, many — but not all — have new reporting lines as part of our overall effort to align our business to priority areas.”

Layoffs Continue

As WRAL TechWire reported on Sept. 23, layoffs began that day in RTP and across the company.

How many workers have been cut in RTP is not known. Cisco would not disclose the number, and it has not filed a layoff notice with the state of North Carolina as of Oct. 7.

One affected worker told WRAL TechWire that the he was losing his job as part of a large reorganization.

Cisco Chairman and CEO John Chambers first disclosed the layoff plans in August.

“A huge reorganization of Cisco’s routing and switching engineering business has been going on, affecting up to 25,000 employees,” Business Insider reports. “This involves some massive changes for the unit, which generated $21.7 billion in revenue, or 60% of the company’s 2014 total revenue from products.”

Citing unnamed sources, Business Insider said the two big groups will focus on software and hardware respectively.

The news comes just a week after Cisco disclosed in a regulatory filing that the compensation of several top executives, including Chambers, had been slashed due to the company’s performance in its last fiscal year.

“[T]he object of the re-org is to get rid of all the little product ‘fiefdoms’ that have cropped up under the product/general manager system at Cisco over the years,” Business Insider said. “By putting everyone into two big groups, Cisco hopes people will work together and share more, making the whole company more nimble.”

The full story can be read at: http://www.businessinsider.com/cisco-undergoing-25000-person-reorg-2014-10#ixzz3FaCO6rUO