Feeds

Cisco to reduce headcount

Between 5,500 and 8,000 jobs to go

  • alert
  • submit to reddit

Build a business case: developing custom apps

Updated: Cisco is planing to cut its headcount by five per cent as part of its plan to adjust to a slowdown in sales in the networking industry.

The loss of full time jobs is likely to be carried out through natural attrition and will occur in parallel to a hiring freeze and restrictions in the number of contract workers it employs.

Reuters has quoted an unnamed drone within the company who gives an account of a recent address by its chief executive, John Chambers. The Cisco head Borg was answering a question on whether the job cuts at Cisco will follow those in other IT firms.

"His answer was that in any organisation there is usually about five percent of the work force that is not in the appropriate position," the source told Reuters.

Cisco currently employs around 48,000 people including around 4,000 temporary workers.

The move to cut staff comes against the backdrop of an announcement by Cisco last month that it had failed to meet revenue and profit forecasts for its second quarter. A slowdown in the US economy and reorganisation amongst US service providers, a key market for Cisco's high-end routers, have hit its revenues far more than it first predicted, and caused it to predict that revenue for the next two quarters will also be flat. ®

Update:

Cisco has issued as statement on job cuts, available here, which said it intends to shed 3,000 to 5,000 regular workers through consolidating jobs as well as voluntary or "involuntary attrition" (that's redundancies to you and me). Between 2,500 to 3,000 temporary and contract workers also face the boot.

As a result of the job cuts, Cisco expects to take a one-time charge of between $300 million to $400 million by the end of its fourth quarter. Other cost cutting measures will slash spending in areas such as contract services, travel, and marketing expenses by the networking giant.

Related Stories:
Recruitment freeze at networking giant Cisco
Cisco's Borg-like acquisition spree may be curtailed
Why you should quit your job and work for Microsoft (or Cisco)
5000 jobs to be axed at Intel as slowdown hits
Nortel slashes more jobs
Lucent to restate sales and cut 10,000 jobs

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.