Cisco to Lay Off 2 Percent of Staff
Cisco Systems Inc. announced Monday that it would lay off about 1,300 employees, or 2% of its global workforce as the networking giant continues its efforts to simplify the company and cut costs to boost profits reported the Wall Street Journal in an article Monday.
The announcement on Monday follows a similar move the company made in summer 2011, when the San Jose, Calif., based company made major cuts by letting go 9% of its workforce.
In a statement, a Cisco spokeswoman called the cuts part of an effort to restructure the company reported the Journal. The layoffs “are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world, she told the Wall Street Journal
Cisco’s troubles began after it spend several years pursuing a numerous new businesses, including ones to sell consumer video cameras and communications gear for space satellites.
However, more recently the company’s income started growing again.
A Cisco spokes woman said Monday; “We routinely review our business to determine where we need to align investment based on growth opportunities,” reported the Journal.
According to its website, Cisco had 65,223 employees at the end of its third quarter.