Cisco Planning 15 Percent Reduction This Month

Sources are telling TechCrunch that Cisco is planning a significant cost reduction this week, which could involve budget cuts and layoffs.

We’ve been hearing that the reductions will be announced on August 17th or 18th and that they will be a part of a push to cut costs by 15 percent, with managers given some flexibility around how they implement this.

“A cost reduction of 15% that will include layoffs” is how one source described it. “Managers either cut costs or cut people.”

The rumors of cuts are clearly making the rounds: Trade magazine CRN yesterday reported layoffs of up to 14,000, and by our 15 percent number the figure might be more like 10,000. Cisco currently has around 72,000 employees worldwide.

A Cisco spokesperson told us that the company is in a quiet period prior to announcing their fourth quarter earnings this week, and would not comment regardless on rumor or speculation.

SOURCE: techcrunch