Cisco cuts 15 percent of its execs amid big layoffs

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.

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TOPICS: Cisco
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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.

Topic: Cisco

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  • RE: Cisco cuts 15 percent of its execs amid big layoffs

    [i]Cisco Systems on Monday shed 11,500 jobs from its payroll[/i]

    Jesus, that's a good chunk of people.

    [i]between layoffs and a move to sell a plant to Foxconn.[/i]

    More outsourcing. Time to kill any tax breaks they may get from this. Slime!
    blind obedience
    • Not really outsourcing

      @blind obedience

      Cisco already outsources manufacturing to Contract Electronic Manufacturing companies.. It is just shifting ownership of one of its few manufacuring facilities to one of its existing outsource partners.
      Your Non Advocate
    • Foxconn is without a doubt, will be shipping set-top boxes back to China.

      @blind obedience > in the news....China expects to be the leader in home entertainment television. Here is good news for our USA exports and posibly even more American "blue collar jobs".
      Rob T.
    • RE: Cisco cuts 15 percent of its execs amid big layoffs

      Get rid of the tax breaks! That really is a load of people :( <a href="http://www.lacarhire.net">LA Car Hire</a> <a href="http://www.ehireacar.com">Hire a Car</a>
      molly83
  • This is obviously the result of consumer greed

    Cisco has to layoff so many people because consumers won't pay the price Cisco needs to charge to keep them employed.
    fr_gough
    • Consumer Greed?

      @fr_gough
      You are blaming the consumer for Cisco's layoffs?
      sboverie
    • Then they should just do what Apple does

      @fr_gough
      and move everything to China.
      William Pharaoh
    • I hope that is sarcasm

      @fr_gough

      if not, it is not the consumer's fault that Cisco priced themselves out of the market
      cyjeff
    • Or do what Micro$oft does

      @William Pharaoh
      and import more cheap H1B workers over here.
      blind obedience
  • RE: Cisco cuts 15 percent of its execs amid big layoffs

    I hope they got rid of whoever decided to buy Flip Video and whoever decided to close them down.
    jtdavies
  • RE: Cisco cuts 15 percent of its execs amid big layoffs

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, BidsNew. comHere
    Janelle8
  • RE: Cisco cuts 15 percent of its execs amid big layoffs

    Yup this is what happening in America NO JOBS! Also there is NO SUCH thing in JOB SECURITY anymore! so whatever job you get hired at either big or small company it will never be a job secure. People take it from me I have my own business and have been happy and dont have to worry about People watching your shoulders and no more coming in early morning, beating the rush hour traffic. I am my own boss and my own hours and great about it working at Home. :)- Thanks to technology it can be all done at home :)-
    ipadsucks
  • New Jobs

    What a Catch 22 this country is in. Keep the jobs here and they may go belly up. Move them to China and nobody here can afford to buy anything as they are now unemployed. The Republican leaders on Capitol Hill keep insisting that thr rich people are job creators and they need more tax cuts. Well, where are the jobs? They are in China, of course. The rich people in this country are NOT creating jobs, they're outsourcing them so they can make more money. And the more they outsource, the worse off this country is. The global economy sounded like an ideal world situation to the politicians. I saw it for what it was..... bringing our standard of living down to that of the rest of the third world countries. We lose, they gain.
    bonafide49
    • RE: Cisco cuts 15 percent of its execs amid big layoffs

      @bonafide49: Which jobs is Cisco moving to China?
      brichter