Cisco lays off 11,500 in $1bn cost-cutting drive
Wednesday 20 July 2011
Cisco Systems is to cut 15 per cent of its staff and sell a set-top-box factory as part of a plan to cut annual expenses by $1bn (£620m) as the network equipment maker tries to revive its fortunes.
The company said it will cut 11,500 jobs, compared with the several thousand that analysts had predicted. The cuts come after Cisco's chief executive, John Chambers, said in April that the company had "lost its way".
Cisco had 73,408 employees as of the end of the last quarter, a spokeswoman said. It will transfer 5,000 to Taiwan's Hon Hai Precision Industry, which will buy the set-top-box plant in Juarez, Mexico.
Of the other 6,500 who are leaving, 2,100 will take early retirement.
"This is a net positive for the company and for investors," Morningstar analyst Grady Burkett said.
Cisco's global scale and a clientele spanning businesses and government agencies has made it one of the technology sector's bellwethers. The management's record of controlling costs and growing the business through acquisitions made them a darling of tech investors over the years. But a fragile global economy proved more damaging than initially expected.
Cisco said in May that it would reorganise after losing ground in the network equipment business. "We still need clarity around what different businesses the cuts are coming from, but Cisco has been very vocal about the fact that they are refocusing on their core businesses such as data centres, switching and routing," Mr Burkett said.
As Voltaire once said, “Ice cream is exquisite. What a pity it isn’t illegal”
- 1 Mother fed her daughter tapeworms to make her skinny for beauty pageant
- 2 Crystal Palace next manager latest: Palace consider Ally McCoist - EXCLUSIVE
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 5 Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
Negotiable: Harrington Starr: Market Administrator (1st line Support, Trade Fl...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...
Negotiable: Harrington Starr: Data Support Analyst (Linux, Solaris, Windows Se...
Negotiable: Harrington Starr: Helpdesk Support Engineer (Windows, MS Office, E...