“Cisco Systems plans to cut 15 percent of its jobs and sell a factory as part of a plan to cut annual expenses by $1 billion as the network equipment maker tries to revive its fortunes,” Sinead Carew and Poornima Gupta report for Reuters.
“The cuts are deeper than what financial analysts expected. The company said on Monday that it will cut 11,500 jobs, compared with the several thousand that analysts predicted,” Carew and Gupta report. “The cuts come after Cisco’s chief executive John Chambers said in April that the company lost its way.”
“The company had 73,408 employees as of the end of the last quarter, a spokeswoman said,” Carew and Gupta report. “Cisco will transfer 5,000 to contract manufacturer Foxconn which will buy a Cisco plant in Juarez, Mexico. Of the other 6,500 who are leaving, 2,100 will get early retirement.”
“It is also one half of a bigger blow dealt to U.S. companies on Monday,” Carew and Gupta report. “The announcement comes on the same day that Borders Group Inc, the second-largest U.S. bookstore chain, canceled its bankruptcy auction plans and said it would close for good. Nearly 11,000 people will lose their jobs.”
“About 15 percent of Cisco executives at the level of vice president and higher will lose their jobs too,” Carew and Gupta report. “Cisco will notify U.S. and Canada-based employees who are losing their jobs in the first week of August. The layoffs in other countries will take place later than this in compliance with local laws and regulations, Cisco said.”
Read more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]