Jul 15
The networking gearmaker said Monday it is eliminating 6,500 jobs and an additional 5,000 Scientific Atlanta cable gear workers in Juarez who will be moving to contract manufacturing giant Foxconn. 
Cisco chief John Chambers The move is part of a $1 billion cost reduction effort to help Cisco adjust to missteps, deal with a drop in tech spending, and face market share losses and a sagging network equipment demand that have knocked Cisco’s stock down 32% in the past year. The latest round of cuts come on top of the 350 employees who were released when Cisco shut down its Flip video camera business in April. Cisco chief John Chambers said at the time that the company had drifted off course and he vowed to roll up his sleeves to make some major changes. As expected, the brunt of the cuts have come in Cisco’s consumer business including the cable unit, which has seen plunging sales. The company said it expects to take a restructuring charge of $1.3 billion over several quarters with $750 million expected in the current period. Cisco shares were unchanged in afterhours trading Monday.
Cisco chief John Chambers The move is part of a $1 billion cost reduction effort to help Cisco adjust to missteps, deal with a drop in tech spending, and face market share losses and a sagging network equipment demand that have knocked Cisco’s stock down 32% in the past year. The latest round of cuts come on top of the 350 employees who were released when Cisco shut down its Flip video camera business in April. Cisco chief John Chambers said at the time that the company had drifted off course and he vowed to roll up his sleeves to make some major changes. As expected, the brunt of the cuts have come in Cisco’s consumer business including the cable unit, which has seen plunging sales. The company said it expects to take a restructuring charge of $1.3 billion over several quarters with $750 million expected in the current period. Cisco shares were unchanged in afterhours trading Monday. Similar Posts:
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