Cisco Systems has fleshed out its plan to axe some 11,500 of its loyal employees.
The networking outfit is prepared to write off some $1.3 billion to dump 6,500 workers right now, reckoning it’ll be quids in in the longer term. The firm said it had managed to persuade around 2,100 sacrificial souls to take early retirement the rest will be summarily executed.
The firm will also flog off set-top box factory in Juarez, Mexico, to Apple’s sweatshop Foxconn for an undisclosed amount.
Cisco said it had 73,408 employees as of the end of its last fiscal quarter and will seek to dump around 15 per cent of them. Some 5000 will join Foxconn with the factory sale, the rest will be axed.
The firm began its cull back in April when it unexpectedly pulled of of its consumer businesses. The 550 workers axed then were just the beginning. Last week we reported on Cicso’s leaked plans to extend the cull dramatically.
The firm reckons the moves will help save it around $1 billion a year. CEO John Chambers earns a $40 million salary .Leave a comment on this article