SAN JOSE — Despite recently announcing plans to cut $1 billion in expenses, including layoffs, this quarter, Cisco is moving ahead with a major acquisition.
The tech giant confirmed it will acquire BabbleLabs, a Campbell-based deep learning startup specializing in noise removal and speech enhancement technology. The acquisition, it said, will deliver an exceptional video meeting experience from anywhere and on any device through the Webex application.
Financial terms of the deal were not disclosed.
“A great meeting experience starts with great audio,” said Jeetu Patel, senior vice president and general manager, Cisco Security and Applications Business Unit, in a statement. “We’re thrilled to welcome BabbleLabs’ team of highly skilled engineers. Their technology is going to provide our customers with yet another important innovation – automatically removing unwanted noise – to continue enabling exceptional Webex meeting experiences.”
The news comes just weeks after the San Jose-based company said it planned massive cost cuts after forecasting revenue drop in the wake of the coronavirus pandemic.
CEO Chuck Robbins – now in that job for five years — did not disclose any details about possible job cuts. However, Cisco noted that a restructuring plan would include voluntary early retirements, layoffs and cost the company some $900 million, according to Reuters.
A Cisco spokesperson confirmed the restructuring plan in an email to WRAL TechWire last week.
“Over the coming weeks and months, Cisco will increase our investments in key business areas that will drive customer satisfaction and partner profitability going forward and reduce investments in others. We will be restructuring parts of our business as a result,” she said.
“Our employees are our priority and we are committed to providing our full support to those transitioning to new roles or teams within Cisco or leaving the company. Where possible, we will offer employees options that enable them to make decisions that best suit their career goals and personal circumstances.”