SAN JOSE, Calif., July 19 (UPI) -- Cisco will lay off about 6,500 employees as part of its plans to simplify its organization and reduce operating expenses, the San Jose, Calif., firm announced.
As part of the networking equipment maker's $1 billion annual operating expense reduction, Cisco said in a release Monday it will reduce its global workforce across all functions by 6,500 employees, including about 2,100 employees who chose to voluntarily accept early retirement. The layoffs – about 9 percent of the workforce – also include a 15 percent reduction at the vice president level and above.
The networking equipment maker said the cuts will yield about $1.3 billion in restructuring charges over several quarters.
As of April, Cisco reported having about 74,000 employees.
Layoff notices will be sent to employees in the United States, Canada and other countries in the first week of August, Cisco said. The remainder of the global reduction in force will occur later in compliance with local laws and regulations.
In addition to the layoffs, Cisco announced it will sell its set-top box manufacturing facility in Juarez, Mexico, to Foxconn Technology Group with no job loss expected. The 5,000 people employed at the Juarez facility will become employees of Foxconn in the first quarter of fiscal 2012.