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Cisco to cut 8,500 jobs from workforce

Citing factors such as a slowing economy and the current "challenging" business environment, Cisco Systems Inc. says it plans to cut 8,500 jobs, which will include 2,500 temporary and contract workers...


May 1, 2001  


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Citing factors such as a slowing economy and the current “challenging” business environment, Cisco Systems Inc. says it plans to cut 8,500 jobs, which will include 2,500 temporary and contract workers.

The San Jose-based networking giant also says it will also take a restructuring charge of up to US$1.2 billion and plans to take a $US2.5-billion charge to write down excess inventory. About 70 per cent of the inventory charge relates to the service provider market and the remaining 30 per cent is related to the enterprise arena.

The company said it expects the measures will reduce costs by about US$1 billion annually and that initial savings will materialize during the fiscal fourth quarter of 2001, which ends in July.


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