Cisco to cut workforce by 11500, sell factory
Cisco Systems plans to cut 15 percent of its jobs and sell a factory as part of a plan to cut annual expenses by $1 billion as the network equipment maker tries to revive its fortunes.
The cuts are deeper than what financial analysts expected. The company said on Monday that it will cut 11,500 jobs, compared with the several thousand that analysts predicted. The cuts come after Cisco's chief executive John Chambers said in April that the company lost its way.
The company had 73,408 employees as of the end of the last quarter, a spokeswoman said. Cisco will transfer 5,000 to contract manufacturer Foxconn which will buy a Cisco plant in Juarez, Mexico. Of the other 6,500 who are leaving, 2,100 will get early retirement. "This is a net positive for the company and for investors," said Morningstar analyst Grady Burkett.
