Cisco Systems Inc. is offering some of its employees an early retirement scheme in order to reduce its budget and reinvigorate the company, a report has revealed.
According to Cisco CEO John Chambers, the company has seen its sales slow due to governmental budgetary concerns. Since the US government is one of Cisco's biggest clients, the tendency of governmental organisations to hang onto existing computer systems longer has a significant effect on the company's bottom line.
The voluntary retirement scheme introduced by the company will be valid for US and Canadian citizens. The eligibility criteria for taking advantage of this plan is reported to be a minimum age of 50 years and a minimum combined age plus years at the company of 60 years.
The company released a statement saying, "Cisco employs a variety of different methods to control costs and align investment dollars, and offering this voluntary early retirement program to those eligible employees in the U.S. and Canada is part of our ongoing commitment to responsible business management."
However, no further details were provided by the company regarding the amount this plan is expected to save or the number of workers that meet the eligibility criteria.