Cisco Cutting 14 Percent of Workforce – Up to 10,000 Jobs
Cisco Systems Inc., the largest networking-equipment company, may cut as many as 10,000 jobs, or about 14 percent of its workforce, to revive profit growth, according to two people familiar with the plans. Up to 7,000 jobs would be eliminated by the end of August, two people familiar with the matter told Bloomberg, the news agency. The maker of networking gear is also providing early-retirement packages to about 3,000 workers. Pictured below is an aerial view of huge Cisco Campus that is located in San Jose, California.
Eliminating jobs will help Cisco wring $1 billion in savings in fiscal 2012, the company said in May. Cisco expects costs of $500 million to $1.1 billion in the fiscal fourth quarter as a result of the voluntary early retirement program, it said in a quarterly filing. The company is also reorganizing management to streamline its business and focus on areas of growth, Cisco said in May. To speed decision making, the company organized field operations into three geographic regions and reformed a council-style management structure.
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