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Cisco, the largest maker of networking equipment, is featured in a number of TV shows and movies, and fans of 24 will remember Cisco technology helping Jack Bauer save the world. "Welcome to the human network," is the company's advertising slogan, and according to a Bloomberg report, Cisco's internal human network is going to be cut down by as many as 10,000, or about 14 percent of its workforce.
Citing "two people familiar with the plans," Bloomberg says Cisco will hand out as many as 7,000 pink slips by the end of August. The company is also offering early-retirement packages to around 3,000 workers who accepted buyouts. Back in May, Cisco said cutting jobs will help the company shave $1 billion in fiscal 2012, while noting that early retirement packages will cost the company between $500 million and $1.1 billion in the fiscal fourth quarter.
"We will provide additional detail on the cost reductions, including layoffs, on our next earnings call," Karen Tillman, a spokeswoman for Cisco, told Bloomberg in reference to an earnings call scheduled for early August.
Those who accept the buyout and retire early will receive a full year's salary and medical benefits. The package was offered to about 5,800 employees, Bloomberg says.
More than half of Cisco's revenue comes from sales of routers and switches. However, Cisco coughed up 6.4 percentage points in global router market share as rival Juniper gained ground. Cisco also recently shut down its Flip video camera division, which resulted in 550 job cuts.
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stradric
July 13, 2011 at 7:28am
And how much of this is related to all the buyouts Cisco has done? Can we finally put the nail in the coffin that businesses create jobs? Businesses don't create jobs. Money in the marketplace creates jobs. Raise the minimum wage and go back to pre-Reagan tax policies and we will be in much better shape.
iwrk4dedpr
July 12, 2011 at 9:38am
Hey wasn't Obama's QE1 and QE2 .... and possibly a QE3 supposed to prevent this????
Love it let the gov't loose with billions of our cash and once again they F us in the behind!
MrHasselblad
July 12, 2011 at 8:56am
So does this mean a devaluation of certifications/credentials such as CCNA and more advanced certifications?
ddimick
July 12, 2011 at 9:38am
I wouldn't worry too much about it. Cisco survived the dot.bomb in decent shape. Even Juniper and HP look for CCIEs when they want to hire networking folks.
