Move will see 6500 workers lose their jobs in a bid to increase profitability
Cisco, makers of the popular flip camera, has announced that in a bid to increase profits, it will be terminating 9% of it’s workforce. The move, which will see 6,500 workers lose their jobs is actually better than speculators thought. Many anticipated the company killing off 10,000 employees.
A report in BGR pins this to cutting $1 billion in annual costs while nudging profits. Bloomberg is also reporting that of the 6,500 employees, 2,100 have agreed to settle for an early-retirement program.
Other cost cutting measures will see Cisco selling a manufacturing facility in Juarez, Mexico to Foxconn. This move will not see the 5,000 employees currently working there lose their jobs but will most probably see them transferred elsewhere.