Cisco to trim 6,500 jobs to cut costs
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San Jose — Cisco Systems Inc. said Monday that it will eliminate 6,500 jobs as part of a broad overhaul aimed at making the company more efficient and more profitable after months of disappointing financial results.
The news comes two months after the San Jose tech giant signaled its intention to cut $1 billion in operating expenses through a combination of layoffs and voluntary retirements.
Cisco said that it would lay off 4,400 workers, after an additional 2,100 accepted early retirement offers last month. The combined cuts represent about 9% of the company’s global workforce of 73,400.
Cisco also said it plans to sell a manufacturing plant in Juarez, Mexico, that employs 5,000 people. The company said it does not expect any jobs to be lost at the plant, where Cisco has made television set-top control boxes for sale to cable and telecommunications service providers.
Chinese electronics manufacturer Foxconn Technology Group is buying the factory for an undisclosed sum. Cisco acquired the plant when it bought the set-top box business known as Scientific Atlanta in 2006.
Bailey writes for the San Jose Mercury News/McClatchy.
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