Jul 24, 2012 01:20 PM EDT
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Cisco Systems to Lay Off 1,300 Employees, to Cut Costs

By Charlene Cooper
A security guard walks past a Cisco display.
(Photo : Reuters) A security guard walks past a Cisco display.

Cisco Systems announced Monday that it will cut 1,300 jobs just months after the company shared its recent difficulty in closing sales with customers.

The cuts are about two percent of Cisco System Inc.'s payroll, which consists of 65,000 workers.

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Cisco is cutting jobs to simplify its operations and have better control over its business as economic conditions worldwide continue to change. The company however did not detail which areas of its operations would face cuts.

"We are performing a focused set of limited restructurings that will collectively impact approximately 2 percent of our global employee population," said Cisco spokesperson Kristin Carvell.

In 2011, Cisco laid off close to 10,000 workers as part of an effort to save $1 billion annually.

"We routinely review our business to determine where we need to align investment based on growth opportunities," the company said in a statement. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco."

Cisco CEO John Chambers said that some of the changes the company might have to adjust to include things like buyers of Cisco's networking systems being unsure about making large purchases due to unpredictable economic conditions.

"We will muddle through this with a little bit of bumps on the road," Chambers told industry analysts back in May.

 

 

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