Cisco to cut 6,000 jobs as part of restructuring efforts

BANGALORE, INDIA: Cisco Systems has announced plans to chop off 6,000 jobs. The company reported sluggish sales and slow growth in emerging markets on a conference call following its quarterly earnings report yesterday.

CEO John Chambers and chief financial officer Frank Calderoni said that the company will cut up to 6,000 jobs, as part of a restructuring action. That is roughly 8 per cent of its total workforce which is close to 74,042 at present.

The restructurng is planned mainly for reallocation of resources and due to changes in the market, said the officials. The restructuring drive will help the company reinvest into key growth areas.

Cisco has announced plans of more than 20,000 job cuts worldwide over the last four years. Plans of 11,000 job cuts was announced in 2011, 1,300 job cuts in 2012 and 4,000 job cuts in 2013.

Cisco officials said that total charges related to the restructuring are forecast to be $700 million. It did not divulge the details of the restructuring process though.