Cisco said this afternoon that it would lay off 6,500 workers, or 9% of its workforce, including 2,100 who had accepted an early retirement plan.The layoffs are hitting execs the hardest — 15% of the company’s VPs and and higher are out the door. Bloated middle management has been a major complaint of a lot of lower-level employees.
Cisco is also selling its facility in Juarez, Mexico, that makes TV set top boxes for its Scientific-Atlanta division, to Chinese manufacturing giant Foxconn. The 5,000 employees at the plant will become employees of Foxconn, and no job losses are expected.
The cuts are going to cost $1.3 billion in restructuring charges over the next few quarters.
Earlier this month, reports emerged that the company planned to cut as many as 10,000 workers.