Cisco cutting down
Cisco Israel fires dozens
Layoffs in Cisco continue as company fires dozens of employees from its development center in Israel. company also lays off thousands around world
Streamlining continues at global technology giant Cisco: Ynet has learned that the company recently laid off dozens of employees from its development center in Israel and thousands from offices worldwide.
This current wave of layoffs was planned at the end of 2008, when the company drafted its streamlining schedule for 2009. Cisco fired about 60 employees at the beginning of 2009, and is now firing dozens more. The company has refused to report the exact number being sent home.
Cisco employs some 700 people at its Israel development center, the second largest in the world.
A Cisco source involved in the move told Ynet that a large number of the layoffs are former employees of P-Cube, an Israeli start-up sold to Cisco in 2004 for $200 million.
Most of those fired in the first wave of layoffs at the beginning of the year were from the development departments of Riverhead and Actona, two Israeli software companies also acquired by Cisco.
The Cisco source also claimed that the layoffs are actually of a more limited scope than what was decided in the company's strategic plan, saying that many of the employees slated to be laid off will be reassigned to another department within the company.
Over the weekend, the Wall Street Journal reported that Cisco sent home between 600 to 700 employees from company headquarters in San Jose, California, along with an unknown number of employees from other offices. The report was based on information received from an anonymous source and did not receive official confirmation from the company.
Cisco CEO John Chambers stated in February that the company, which employs some 66,000 workers worldwide, will let go of about 2,000 employees by the end of July. Analysts estimate that this will save the company close to $200 million a year.
The company in response said, "Cisco does not respond to issues related to human resources changes within the company."
An initial report was received by Ynet via Red Mail
