Cisco Slashes Workforce By 11,500, Including 15% Of Execs

Cisco CEO John Chambers

Photo: AP

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.

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