Bloomberg reports that Cisco, best known for playing a substantial role in building that “internet” thing you kids like so much, may be preparing to cut as many as 10,000 jobs from their workforce, or about 14% of their 70,000+ employees. Tough times for the beloved networking specialist.
The move would come as part of a more comprehensive overhaul of the company which includes management reorganization, and removal from less profitable spaces in the industry. It’s not a new move for Cisco, either. Some of you may recall a few months back when Cisco killed off the line of cameras you forgot existed, the Flip.
Cisco’s stock has dropped 32% from where it was this time a year ago, so the restructuring is an unsurprising move. Cisco is said to cut out 7,000 jobs, while offering early-retirement incentives to as many as 3,000 more. If they all take their money and the not-so-subtle nod to the door willingly, Cisco may be able to cut as much as $1 billion from their 2012 fiscal year budget. Handy, since it’s estimated they may be shelling out up to that same amount (or slightly more) just to get the retirees out the door.
Source : Bloomberg