Cisco to cut 1,300 jobs to lower costs
updated 04:43 pm EDT, Mon July 23, 2012
Two percent of workforce to go in streamlining effort
Cisco announced today that it will be cutting 1,300 positions from its workforce as part of an effort to streamline its organizational structure and reduce costs. As Bloomberg reports, the two percent workforce reduction was announced in an emailed statement today. The move is part of a continuing effort by Cisco to retool itself for the modern tech environment.
Last year, in deciding to trim $1 billion in annual costs, Cisco targeted 6,500 jobs for elimination, about nine percent of its full-time personnel. Sales for the router maker have declined in recent years, and the job cuts are aimed at eliminating less-profitable aspects of its business in order to focus on where the company is making money.
Toward that end, the company axed its underperforming Cius tablet and has increased its efforts in routing, collaboration, the cloud, video, and business process architectures. Cisco also bought cloud virtual machine security company Virtuata this month in an effort to improve its cloud capabilities.
