Cisco Australia remains silent on job loss impact
- 19 July, 2011 10:36
Cisco Systems will cut about 6,500 jobs as part of an effort to focus its business and reduce operating expenses by about $US1 billion per year.
This eliminates about 9 percent of Cisco's regular, full-time workforce. In the ranks of vice president and above, Cisco said it will cut 15 percent of employees.
Affected employees in the U.S, Canada and some other countries will be notified in the first week of August. Notifications will occur later in other areas, in accordance with local laws, the company said.
The vendor’s local operation continues to remain silent on local staff cuts. It employs about 950 staff in Australia.
“All functions and geographic regions have been impacted, but we are not disclosing the specific regional impact,” Cisco spokeswoman, Linda Horiuchi, told ARN.
The company will incur about $1.3 billion in one-time costs for the layoffs, from items such as severance and termination benefits. Those costs will be incurred over several upcoming quarters.
Cisco also announced it will transfer a set-top-box manufacturing facility in Mexico to Taiwan-based contract manufacturer Foxconn. No jobs will be lost in that transaction, but about 5000 Cisco employees will be transferred to Foxconn.
Cisco is taking drastic efforts to cut costs and return its focus to its core routing and switching businesses after posting disappointing results and watching its stock fall over the past several quarters.
Stephen Lawson from the IDG News Service also contributed this report.