Cisco Will Cut 6,500 Workers, Record $1.3 Billion in Costs
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Cisco Systems Inc., the largest networking-equipment maker, plans to eliminate about 6,500 jobs, or 9 percent of its full-time workforce, to help trim $1 billion in annual costs and step up profit growth.
The cuts include 2,100 employees who took a voluntary early-retirement program, Cisco said today in a statement. As part of the move, the company expects to record pretax restructuring expenses of $1.3 billion. About $750 million will come in the fiscal fourth quarter and the remainder will be booked in fiscal 2012. Cisco also said it will sell a manufacturing plant in Mexico, transferring 5,000 workers.