Network Giant Cisco Could Cut 10,000 Jobs: Report |
Cisco Systems, Inc. (NASDAQ: CSCO), the leader in networking equipment, is considering cuts to its workforce that could number as many as 10,000 people, two people familiar with the matter told Bloomberg.
The proposed cuts, which could amount to 14% of its workforce, would be enacted in order to reduce costs and revive profit growth.
Cisco announced this spring that it was aiming to save $1 billion in the fiscal year 2012. The expense cutting initiative is echoed by other big companies in the U.S., including investment bank Goldman Sachs (NYSE: GS).
According to the Bloomberg report, "The cuts include as many as 7,000 jobs that would be eliminated by the end of August, said the people, who asked not to be identified because the plans aren't final. Cisco is also providing early-retirement packages to about 3,000 workers who accepted buyouts, the people said."
The flood of talent leaving Cisco will undoubtedly be a plus for other technology companies that are looking to pick up new employees. What remains to be seen, however, is how many individuals cannot gain new employment.
Karen Tillman, a spokeswoman for Cisco, told Bloomberg that “We will provide additional detail on the cost reductions, including layoffs, on our next earnings call.”
Cisco's next earnings call is scheduled for early August.
Cisco sells networking equipment and other products related to the communications and information technology industry.
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