Cisco Systems Inc. yesterday announced additional details of what it described as an "action plan to simplify the organization, refine operations, and reduce annual operating expenses."
July 20, 2011
Cisco Systems Inc. yesterday announced additional details of what it described as an “action plan to simplify the organization, refine operations, and reduce annual operating expenses.”
As part of the company’s US$1 billion annual operating expense reduction strategy, Cisco will reduce its global workforce “across all functions” by an estimated 6,500 employees, which includes upwards of 2,100 employees who will take an early retirement package.
“This also includes a reduction totaling approximately 15% of vice president level and above employees and represents a reduction of approximately 9% of Cisco’s regular full-time workforce,” the company said in a statement. “All affected employees will receive severance pay and outplacement assistance.”
Impacted employees in Canada, the U.S. and select countries will be notified during the first week of August. The remainder of the global workforce reductions is expected to occur at a later date in compliance with local laws and regulations.