Cisco to Cut Thousands of Workers After Sales Growth Stalls
- Networking company grappling with corporate spending slowdown
- Shares slide in late trading after Cisco gives dour forecast
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Cisco Systems Inc., the largest maker of networking equipment, plans to cut thousands of jobs after a slowdown in corporate tech spending wiped out its sales growth.
A restructuring plan will affect roughly 5% of Cisco’s workforce, the company said Wednesday. It had almost 85,000 employees as of last year, suggesting that the move will involve approximately 4,000 jobs. The restructuring will cost about $500 million, Cisco said.