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Cisco Systems has announced it will cut about 14 per cent of its global workforce, or about 11,500 employees, as part of a widely expected reorganisation.
The network gear maker expects to save $1bn a year by eliminating 6,500 jobs, including 2,100 employees who opted to participate in an early retirement programme. The cuts, which were greater than the rumoured figure circulating last week, include a 15 per cent reduction in employees at the vice president level or higher, the company said.
The San Jose, California-based company also plans to eliminate about 5,000 jobs by selling its set-top box manufacturing facility in Juarez, Mexico to Foxconn. Cisco said employees at the Mexico plant would become Foxconn employees in the first quarter of 2012 and that no job cuts were expected at the facility as a result of the sale.