Cisco is to reduce its global workforce by 14pc in a US$1bn exercise, including 15pc of vice-president and above employees. The move involves 6,500 full-time employees and the transfer of 5,000 manufacturing workers in Mexico to outsourcing giant Foxconn.
As reported in recent weeks, the networking giant will initially reduce its global workforce by 6,500 people, including 2,100 employees who elected to take early retirement.
Impacted employees in the US, Canada and other countries will be notified during the first week of August.
Cisco says the cost of the restructure will not exceed US$1.3bn over several quarters.
Cisco expects US$750m of these charges will be recognised during the fourth quarter of fiscal 2011, including about $500m relating to the voluntary early retirement programme.
Cisco also announced earlier today an agreement for sale of its set-top box manufacturing facility in Juarez, Mexico, to Foxconn Technology Group.
The roughly 5,000 people employed at the facility will become employees of Foxconn in the first quarter of fiscal 2012 and no job losses are expected as a result of the sale.
