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(Update, Aug. 19: Cisco in August said it was slicing 4,000 jobs, or 5% of its workforce, in a global restructuring intended to rebalance the business. Cisco said the cutbacks won’t directly affect new acquisition Sourcefire.)
Separately, Extreme Networks revealed in a January financial filing that it was cutting 13% of its workforce (about 90 jobs) as part of an effort to slash spending by $7 million per quarter. Extreme, which has struggled to grow its market share in Ethernet switching, had a similar-sized layoff 18 months before.
The year began very roughly for Nokia’s IT professionals, as more than 800 were transferred to outsourcing firms and another 300 lost their jobs. Nokia said at the time: The goal is to reduce operating costs and create an IT organization "appropriate for Nokia's current size and scope."
Motorola Mobility employees have been feeling the results of the company’s buyout by Google in 2011. Motorola Mobility said in March it was cutting 1,200 staff, in addition to 4,000 axed last year as the company refocuses on high-end devices. Earlier this month, Google acknowledged in a financial report cutting more than 5,000 jobs at Motorola Mobility last quarter. Most of the job cuts last quarter were the result of a deal between manufacturing company Flextronics and Motorola.
On the consumer side, social games maker Zynga in June said it was eliminating 18% of its workforce, or about 500 jobs, in an effort to reduce costs and hone its focus on mobile. Zynga has struggled mightily since going public in 2011 and despite its high profile relationship with Facebook.
According to the latest numbers from outplacement firm Challenger, Gray & Christmas, employers announced 8.5% fewer job cuts through the first half of 2013 vs. the year-ago six-month period. The financial and retail industries have been particularly hard hit, and cuts surged in the computer industry in June. Spending cuts by the feds related to sequestration and concerns by others related to rising healthcare costs, are among some of the broader workforce reduction drivers, according to the outplacement firm. But here’s the bright side of things:
“Right now, job cuts are on track to the have the second lowest annual total since 2000,” according to Challenger, which notes the third quarter is typically the slowest period for downsizing. “Unless there is a major shock to the economy in the second half of 2013, we could see layoff activity decline continue toward pre-2000 levels.”
Read more about infrastructure management in Network World's Infrastructure Management section.