Cisco plans 1,300 layoffs in new cost-cutting round
Cisco is cutting more employees from its payroll as part of a restructuring effort aimed at refocusing the company on its core strengths in routers and switches for telecommunications networks.
The infrastructure company said Monday the latest round of layoffs would affect about 2 percent of its global workforce of 65,000 employees, or about 1,300 workers.
The reductions "are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world," a company spokeswoman said.
Cisco shed nearly 10,000 employees from its payroll last year as it overhauled its business. That same year, it sold off a factory to Foxconn; shuttered its Flip camera business; and announced it would refocus on core routing, switching and services, collaboration, architectures, and video.
Those efforts appeared to be paying off when it released its most recent financial results in May. Profits for its fiscal third quarter rose nearly 20 percent to $2.2 billion on sales of $11.6 billion, but the company warned that customer spending remained "cautious" because of the uncertain state of the global economy and forecast only slight increases in revenue for the current quarter.
Cisco plans to report its fiscal fourth-quarter results on Aug. 15.