Cisco cuts 15 percent of its execs amid big layoffs

Summary:Cisco Systems shed 11,500 jobs from its payroll between layoffs and a move to sell a plant to Foxconn.

Cisco Systems on Monday shed 11,500 jobs from its payroll between layoffs and a move to sell a plant to Foxconn.

The company had been expected to cut 5,000 to 10,000 jobs, but wound up laying off or potentially transferring a total of 11,500 workers.

According to Cisco, the workforce cuts break down like this:

  • 6,500 job cuts, including 2,100 employees who took early retirement.
  • Of that sum, 15 percent of vice president and above employees were cut.
  • 9 percent of Cisco's workforce was hit, but that excludes the sale to Foxconn.
  • Employees will be notified in the first week of August.

As a result, Cisco will take charges of $1.3 billion in upcoming quarters. The first installment of that charge---$750 million---will be recognized in the fourth quarter.

The sale to Foxconn ---announced separately---rids Cisco of a set-top box manufacturing facility. Cisco had 5,000 workers there who will be transferred to Foxconn. Cisco said no layoffs are expected.

Topics: Cisco

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.