US firms looks to workforce redundancies to revive profits

Up to 10,000 job losses feared at Cisco

Cisco is reported to be considering ditching as many as 10,000 employees – 14 per cent of its overall workforce – in an attempt to improve its margins.

According to Bloomberg, the potential cuts include 7,000 redundancies and a further 3,000 early retirement packages, as the company looks to make $1 billion in savings.

Cisco has been losing market share to rivals Juniper and Hewlett Packard in the switches and routers sector, which comprises more than half of Cisco’s revenues.

“The revenue trajectory hasn’t been where it should be,” Gleacher and Co analyst Brian Marshall told Bloomberg. “The company is not staffed on an appropriate level. They simply have too many employees.”

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