Cisco offers benefits for laid off workers

SAN FRANCISCO: Cisco Systems Inc., the biggest maker of gear that helps to

power the Internet, will offer six months of pay to laid-off employees, as part

of its plan to trim its work force by 5,000, or 11 per cent, in the face of a US

economic slowdown.

The San Jose, Calif.-based computer-networking concern will offer the

laid-off workers two months of pay and benefits, as well as an additional four

months of pay and benefits, provided the employee signs a severance agreement,

according to an internal memo written by Chief Financial Officer Larry Carter.

A Cisco spokesman later confirmed the authenticity of the memo that was

distributed on Thursday. The memo said that within the next two weeks, senior

management would have finished a review of which projects and products should be

suspended, as well as which employees would be laid off. This is in keeping with

the timeline chief executive John Chambers had mentioned in comments following

its March 9 announcement that it was trimming its payroll.

"We fully recognize that the next few weeks will be difficult for all of

us. It is important that we treat each other with sensitivity, understanding and

dignity," Carter wrote. "Now, more than ever, we must walk the talk of

Cisco's culture and remain focused on our long-term business outlook."

Cisco also, in notifying employees of its plans early in March, reiterated

its plan to defer salary raises during its April review and encouraged employees

to take three personal days in the fiscal third quarter and seven personal days

in the fourth quarter, which concludes toward the end of July. Cisco is among a

slew of high-technology firms that have announced layoffs to control costs and

boost profitability amid slowing sales, capital spending and economic weakness.

(C) Reuters Limited 2001.