Cisco cuts 1300 jobs in 'limited restructuring'

"We continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco"
  • (Network World)
  • 23 July, 2012 21:28

Cisco is cutting 2 per cent of its global workforce, or about 1300 employees, in a "limited restructuring," the company has announced.

NUMBERS: Biggest tech industry layoffs of 2012

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"We routinely review our business to determine where we need to align investment based on growth opportunities," wrote Cisco spokesperson, Karen Tillman, in an emailed statement. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco.

"As we focus on both of these efforts, we are performing a focused set of limited restructurings that will collectively impact approximately 2% of our global employee population. These actions, subject to local legal requirements, including consultation where required, are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world."

Tillman did not detail the business units or product lines impacted by the reduction. Rumours on the blogosphere indicate that Cisco's Wide Area Application Services (WAAS) sales and engineering force is one, as well as public sector operations and Advanced Services.

Cisco's headcount at the end of Q3 totaled 65,223 employees.

Cisco refers to reductions totaling less than 10 per cent of its global workforce as "limited restructurings". This is a way for the company to cut costs by reducing workforce in small, incremental moves without having to publicly announce or disclose the actions, sources say.

Cisco last July said it was cutting 6500 jobs, or 9 per cent of its workforce, in an effort to better focus its business and reduce operating expenses by $1 billion a year. 

A Cisco A/NZ spokesperson said the company will not be providing any additional comment as it is "in its quiet period until the Q4FY12 financial earnings announcement on August 15 at 1:30 p.m. PT (Aug. 16 in Australia)".

Jim Duffy has been covering technology for over 25 years, 21 at Network World. He also writes The Cisco Connection blog and can be reached on Twitter @Jim_Duffy.

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More about: AAS, Cisco, UTS
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