Cisco May Slash Up to 10,000 Jobs

By Matt Egan Features FOXBusiness


Cisco Systems (CSCO) is reportedly considering slashing as many as 10,000 jobs as the struggling tech giant searches for a way to stem the bleeding.

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According to Bloomberg News, San Jose-based Cisco is mulling cutting as many as 7,000 spots by the end of August. The 10,000 figure represents about 14% of its total workforce.

Cisco, which is the world largest networking-equipment maker, is also providing early-retirement packages to about 3,000 workers who signed off on buyouts, Bloomberg reported.

The potential job cuts come after Cisco disclosed an 18% decline in fiscal third-quarter earnings and revealed plans for $1 billion in cost reductions amid a weaker-than-expected outlook for the current quarter.

Cisco told Bloomberg it would spell out details about cost-cutting moves when it reports quarterly results in August.

In recent quarters, Cisco has lost ground to competitors such as Juniper Networks (JNPR) and Hewlett-Packard (HPQ).

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Cisco, which is a member of the Dow Jones Industrial Average, saw its stock inch up 0.1% to $15.45 ahead of Tuesdays open. The companys shares have declined 23.7% year-to-date and lost nearly one-third of their value over the past 52 weeks.

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