- Microsoft Windows chief decries standards grandstanding
- The 5 best, and 5 worst, features of Google Chrome OS
- Federal government using PS3 to crack pedophile passwords
- 10G Ethernet cheat sheet
- Top 10 free Windows tools for IT pros, at a glance
Cisco is not ruling out layoffs as it grapples with the worldwide economic downturn.
The company will engage in a “realignment and restructuring of resources” in an effort to reduce costs that could result in the elimination of 1,500 to 2,000 jobs, Cisco CEO John Chambers told Wall Street analysts during a second quarter earnings call this week.
Cisco ended the quarter with sales down 7.5% and earnings down 27% from last year, yet still better than Wall Street estimates. Guidance for the third quarter, however, is somber: sales off 15% to 20% from last year.
In fiscal 2008 and the first quarter in 2009, Cisco “realigned and restructured” approximately 1,000 jobs. Further cost cutting, restructuring and realigning could result in the additional workforce reductions, but also may allow Cisco to avoid a larger scale layoff of 10% or more of a global workforce of 67,000.
But he also did not rule out such a move given the deteriorating state of the global economy. “We are not planning across the board workforce reductions,” he told analysts on the call. “We are not going to consider a layoff at this time. We may be able to avoid large scale downsizing events,” he said.
Rss FeedRss Feed
The Leader in Network Knowledge
Partner Content
Simplify Your Branch Infrastructure
Learn how to simplify your branch infrastructure while dramatically increasing app performance with Citrix Branch Repeater.
Download the Free Info Kit
Next-Gen Load Balancing
Free Guide: "Next Gen Load Balancing: 8 Things You Need to Handle Today's Network Traffic" shows you the functionality needed in your next load balancer.
Download the Free Guide
Accelerate Your Web Apps by up to 5x
Free Guide: "The Secret to Getting Maximum Speed from your Web Applications."' Learn how you can deliver Web apps up to 5x faster.
Download the Free Guide
Comments (13)
In Russia...By Anonymous on February 4, 2009, 10:19 pmCisco cut most contractors and fires most people after "protection period".
Reply | Read entire comment
Lessons Learned...By Anonymous on February 4, 2009, 11:03 pmLay-Offs only make good people leave... GE's way of letting the bottom 10% go (with the protection period) is the correct way of doing it. Contractors..... are whole...
Reply | Read entire comment
LayoffsBy Bithead on February 5, 2009, 9:27 amYou can bet if next quarter doesnt meet expectations people will go. Cisco already gets rid of the bottom 10% every year. Contractors have already been layed off...
Reply | Read entire comment
In MexicoBy Anonymous on February 5, 2009, 9:49 amCisco Mexico has already lay off 15 contractors last week, probably with more to come.
Reply | Read entire comment
Protection period?By Amogh on February 5, 2009, 9:55 amWhat is this protection period? Is it same as probation period?
Reply | Read entire comment
not closeBy Anonymous on February 5, 2009, 2:33 pmas usual this is not at all what they said on the earnings call.
Reply | Read entire comment
View all comments