Listen to this article Cisco Systems Withdraws From Russia And Incurs $23.42M In Equipment Destruction Costs
Introduction
In March 2022, Cisco Systems Withdraws From Russia, which was followed by a refusal to renew licenses. As a result, the company has officially withdrawn from both the Russian and Belarusian markets, with no plans to resume operations in the region.
Asset Destruction
As part of the withdrawal process, Cisco Systems has physically destroyed a range of assets, including spare parts, equipment, product demos, and furniture, with an estimated value of ₽1.864 billion ($23.42 million). In addition, the company has disposed of fixed assets worth ₽1 million ($12,600).
Workforce Reduction
By the end of 2022, Cisco Systems had reduced its workforce in Russia from 60 to just 5 employees.Furthermore the company terminated contracts with the rest of its employees, resulting in a total payout of ₽190.6 million ($2.4 million).
Conclusion
Given Cisco Systems’ decision to withdraw from the Russian and Belarusian markets and destroy its assets, it seems that the company has no intention of returning to the region.Also this move marks a significant shift in the company’s global strategy and raises questions about its future plans for expansion and growth.
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