Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

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Cisco announced Monday that it will reduce its workforce by 6,500 employees in the first half of August as part of its effort to adjust its business to increased competition in the switching and router market.

The reduction consists of 2,100 employees who have elected to take early retirement and 4,400 who will be laid off. Cisco noted that the ranks of vice president and above will experience a 15% reduction in force and the full-time, regular workforce a 9% reduction. Those in the U.S. and Canada will get the word in the first week of August.

http://www.informationweek.com/news/infrastructure/switches/231002056?cid=fbook-informationweek&wc=4

Cisco Systems is weeks away from announcing one of the biggest workforce reductions in its history. It could cut as many as 5,000 jobs — or nearly seven percent of its headcount.

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The number of people who will be fired will be determined by the number who qualify for and seek an early retirement package: Marshall expects about 1,000 to take a buyout and 4,000 to be fired.

http://allthingsd.com/20110711/ciscos-big-layoff-only-weeks-away-gleacher-analyst-says/

[dalegg 143]

See here U.S government. This is how you do it.

[Mr. Big Dog 10,747]

See here U.S government. This is how you do it.

Do what? Adjust to increased competition? Who is competing with the US government in what sector?

[dalegg 143]

Do what? Adjust to increased competition? Who is competing with the US government in what sector?

Make your budget with cuts only.

[Mr. Big Dog 10,747]

Make your budget with cuts only.

Do you think that is what Cisco is doing? Do you really believe that while cutting back on their workforce they are not investing at the same time in research, innovation and such to remain a leader in their industry? They're not just cutting. If they were, they could as well just shut their doors altogether.

[dalegg 143]

Do you think that is what Cisco is doing? Do you really believe that while cutting back on their workforce they are not investing at the same time in research, innovation and such to remain a leader in their industry? They're not just cutting. If they were, they could as well just shut their doors altogether.

I don't believe they are raising prices though.

[Mr. Big Dog 10,747]

I don't believe they are raising prices though.

I don't believe they've previously lowered them to unsustainable levels either.

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I don't believe they are raising prices though.

They are changing the way they charge for services, at least they are with my employer. We have a flat budget mandate on OpEx but not on CapEx so we used to structure all buys to be top-heavy with minimal maintenance costs. Cisco is now pushing back, saying they want to go back to the way things used to be - healthy ongoing revenue stream with little CapEx investment on our part.

[Ban Hammer 13,401]

i keep reading the headline as "crisco layoffs"

[mawilson 2,133]

i keep reading the headline as "crisco layoffs"

You should lay off the Crisco.

[Ban Hammer 13,401]

You should lay off the Crisco.

hey just doing my part to keep americans employed!