Cisco Will Lay Off More Than 4,000 In 5% Staff Cut

An anonymous reader quotes a report from SFGate: Cisco, the San Jose-based networking and telecommunications giant, is laying off 5% of its workforce. The company announced the cuts in a Wednesday filing with the Securities and Exchange Commission, alongside its quarterly earnings report. Based on the company's reported head count, the layoffs will hit at least 4,000 workers. Cisco wrote in the filing that the cuts are aimed to 'realign the organization and enable further investment in key priority areas.' Most of the cuts will go through this quarter, per the filing. Cisco estimated that severance payments and other termination benefits will cost the company $800 million.
In a statement to SFGATE on Wednesday, Cisco spokesperson Robyn Blum cited 'the cautious macro environment, our customers continuing to absorb high levels of product inventory, and ongoing weakness in the Service Provider market,' as reasons for the layoff.
'The care of our people is a top priority, and we will provide impacted employees with career support and market-competitive severance packages,' the statement continued.

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