Cisco to shed 14 percent of workforce

Cisco logoCisco Systems announced today it would cut about 14 percent of its global workforce, or about 11,500 employees, as part of a widely expected reorganization.

The network-gear maker expects to save $1 billion a year by eliminating 6,500 jobs, including 2,100 employees who opted to participate in an early retirement program. The cuts, which were greater than the rumored figure circulating last week, include a 15 percent reduction in employees at the vice president level or higher, the company said.

The San Jose, Calif.-based company also plans to eliminate about 5,000 jobs by selling its set-top box manufacturing facility in Juarez, Mexico, to Foxconn. Cisco said employees at the Mexico plant would become Foxconn employees in the first quarter of 2012 and that no job cuts were expected at the facility as a result of the sale.

Cisco said it will take a one-time charge of $1.3 billion to cover the costs of the reorganization.

The company announced its intention to cut jobs to combat its ailing fortunes during its third-quarter earnings report in May. "The decision to include headcount reduction of our full-time and contractor workforce as a way of reducing expense is difficult," Cisco COO Gary Moore said at the time.

The company has had poor luck trying to moving into the consumer space, and in a disappointing move for some, recently killed the Flip camcorder to focus its attention on its bread-and-butter networking business.

But as Cisco moved into new markets, sales in its core businesses slowed and Cisco lost market share. While Cisco still dominates in the IP routing market, it has been more challenged in its Ethernet switching business at the hands of rivals such as Hewlett-Packard and Chinese manufacturers such as Huawei.

Source: CNET

Tags: Cisco

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

A mobile hotspot in Australia will be capable of hitting gigabit speeds on the go
A new game could be in the works as Blizzard appears to have been hiring for a Diablo-related project
Nokia CEO Rajeev Suri will speak at MWC 2017
However what if you could go way, way back?
The Helio P15 packs an octa-core Cortex-A53 processor clocked at 2.2GHz
Samsung claims up to 27-percent higher performance or 40-percent lower power
Preliminary data for October shows another Windows 10 boom
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments