It's a sad day in Cisco-land.
The company announced that it would lay off 6,500 employees and sell off a manufacturing plant in Mexico with 5,000 workers. The last time the networking giant made cuts this large was 2001, when it cut 6,000 full-timers and 2,500 contractors. In all, the company's headcount is dropping 15.6%.
Rank-and-file employees must feel some amount of solace knowing that the cuts are being spread around. The layoffs will include many middle managers, the San Jose, Calif. company said in a press release; some 15% of all vice presidents and higher at the company are being let go. Cisco says the cuts will allow it to save $1 billion annually.
Some of the cuts will come voluntarily, with about 2,100 employees having opted for early retirement packages. The company says that it will spend up to $1.3 billion on severance packages. Spread out among the 6,500 affected workers, that averages out to $200,000 per pink slip.
Cisco employed 73,408 workers globally as of its most recent earnings statement, and 11,600 of those work in the company's San Jose headquarters, where it is the second-largest employer after the county government. (WSJ, San Jose Mercury News)
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Microsoft Innovation (Cnet)
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Buzz Around the Office
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If this isn't the cutest thing you've seen all day, call 911 -- you're going through a cuteness overdose and you need immediate medical attention.
List of the Day: How to Revitalize Your Job
1. Acknowledge your problems at work.
2. Write an action plan for yourself, detailing how you will make a change.
3. Speak with your boss.
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