In According to sources, the networking equipment company, Cisco Systems Inc could eliminate as many as 10,000 jobs, which translates into around 14 percent of its total workforce. The exercise is aimed at reviving profit growth. Up to 7000 jobs could be lost by the end of August, and beyond that Cisco is also planning to offer early-retirement packages to about 3,000 workers.
Cisco’s Chief Executive John Chambers is working to turn around the Silicon Valley bellwether and he has already set a goal of slashing costs by $1 billion. He has accepted that company’s outlook in the next fiscal year starting in August is not going to live up to the company’s previous growth expectations.
Even the long term revenue growth targets for the company are going to be pushed down to about 10 percent from a forecast of 12 percent to 17 percent. During the last five calendar years Cisco’s revenue has grown by 11 per cent. The previous record layoffs that Cisco has witnessed came in 2001, when the workforce was trimmed by 8000.
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