Cisco set to slash 10,000 jobs
updated 11:10 pm EDT, Mon July 11, 2011
Workforce to be reduced by 14%
Cisco is reportedly preparing to reduce its workforce by approximately 14 percent, a move that may eliminate 10,000 positions. The company is said to be planning 7,000 layoffs by the end of August, while early-retirement incentives will be offered to another 3,000 employees, unnamed sources have told Bloomberg.
The workforce reductions are said to be part of a broader strategy to bolster profits as the company loses market share to its competitors. The sources suggest CEO John Chambers is also planning to shift the company's focus away from business segments that are struggling to make profits.
Cisco recently killed its Flip efforts following lackluster sales of the small video cameras. Analysts expect more cuts in the company's consumer-product division, potentially affecting the home-networking equipment produced under the Linksys label.
The company is expected to formally announce its restructuring plans during an earnings call scheduled for August.
Fresh-Faced Recruit
Joined: Nov 2008
Terrible! More jobs losses in
a struggling economy. I sure hope the employees losing their jobs get some sort of severance pay. Cisco's business must be in really bad shape if that many employees are being laid off.