Cisco Systems (CSCO) on Thursday continued decoration its workers at its San Jose , CA , headquarters. Sources close to the corporation say between 600 and 700 employees at the networking massive received layoff notices. “This limited reorganization is part of our continuing, targeted realignment of resources and was formerly discussed on our fiscal second and third quarter 2009 wages calls,” a statement issued by Cisco reads. Like just about every company, Cisco has seen its sales refuse in the face of the global recession.
With more than 66,000 workers worldwide, Thursday's cuts include about 1% of Cisco's workforce. The cuts are the latest in cost-cutting measures being implemented at Cisco universal. During the company's earnings call, Cisco CEO John Chambers said job cuts were likely to be earlier to the high side of the 1,500 to 2,000 the company previously announced. Still, Chambers does not view even 2,000 lost jobs as a bunch layoff.
“My own view is that if you have to do a layoff, and we try all probable to avoid them, it needs to be of critical mass to validate the loss of business momentum, impact on workers and disruption in key projects,” Chambers said during the Q2 earnings call. “Being very apparent, the definition of a layoff to me is at least 10% of your workers. In very straight terms, we are not going to consider a layoff at this point in time. And while there are no securities, we think the odds are sensible that if we execute effectively as outlined in this call, that we may be able to avoid large downsizing events.” Chambers is probable to update the company's layoff plan during its 4 th quarter earnings call in August. Cisco stock traded up approximately 2% for the day.
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