In response to the invasion of Ukraine earlier this year, Cisco has announced plans to formally leave Russia and wind down its business operations in Russia and Belarus.
The networking company first made a statement on March 3, declaring that it would be halting all business operations in Russia and Belarus “for the foreseeable future.” On Thursday the company released another statement, noting that it had continued to “closely monitor” the war in Ukraine and as a result, a decision had been made to “begin an orderly wind-down of our business in Russia and Belarus.”
“Cisco remains committed to using all its resources to help our employees, the institutions and people of Ukraine, and our customers and partners during this challenging time,” the statement said.
Scott Herren, the CFO of Cisco, stated to analysts on an earnings call in April that historically, revenue from Russia, Belarus, and Ukraine has made up about 1% of the company’s overall sales.
The decision to cease operations in Belarus and Russia, he said, did have an adverse effect on revenue, costing the corporation “about $200 million or two percentage points of growth.”
A lengthy list of Western technology businesses stopping operations in Russia started to expand in the days following Russia’s initial incursion.
After Ukrainian vice prime minister, Mykhailo Fedorov publicly issued letters to both firms on Twitter, SAP and Oracle became two of the first tech corporations to officially leave the nation.
Microsoft also made the announcement that it would stop making new product sales in Russia at the beginning of March “in line with government sanctions determinations.”Learn more about this at networkworld.com