Cisco's Plan to Cut Jobs May Lead to a Downward Spiral
According to a Gleacher analyst, Cisco Systems (CSCO) is expected tocut about 5,000 jobs in August. That would be a massive 7% workforce reduction for a company with roughly 73,000 employees worldwide.
According to the analyst, that reduction would be similar to large cuts the company took back in 2001 and 2002. Clearly those cuts were successful, or at the very least didn't preclude CSCO from being a dominant tech company in the 2000s.
Update: According to Bloomberg and other sources the job cuts might actually approach 10,000 or double the original estimate. That number is even scarier as the problems are larger than originally thought. Productivity will be disrupted in a major way with that many people cut.
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