14 DAY TRIAL // Even though the world economy is said to be moving forward again, some companies are still performing layoffs, one of said corporations, apparently, being none other than Cisco.
Large IT companies, like those of other segments, are always those that offer employment to most people.
Unfortunately, this also means that, once one of them has decided to reduce their work force, the number of employees being made redundant will have more than one or a couple of zeros, so to speak.
Turns out that the most recent IT player to decide on performing layoffs is Cisco Systems, worldwide supplier of networking products.
Multiple reports to this effect have arisen, with the general consensus being that the number of people set to be let go ranges from 5,000 or less to 10,000.
5,000 is the equivalent of 7% of the total workforce (73,400) as of April and the decision was taken because Cisco wants to cut back on its annual expenses.
Exact plans have not been made perfectly clear (more details will be given at is upcoming earnings call), but it is believed that the company will manage to spend $1 billion less each year once the step is taken.
“[The move] will take out $1 billion in cost from our fiscal year 2012 expense run-rate out as part of our efforts to streamline company operations, including a planned reduction in workforce,” a Cisco spokeswoman said during the third quarter earnings call.
“We will provide additional detail on the cost reductions, including layoffs, on our next earnings call,” an e-mail supposedly added.
This might end up being one of the largest workforce reductions Cisco has ever done, although it is unclear if the outfit will regain its marketing momentum in time for it to make a real difference.
Either way, things will become clear in August, when the layoffs are bound to start.