80 employees at Cisco in RTP, hundreds elsewhere told they are losing jobs
Posted July 16, 2009
Research Triangle Park, N.C. — Some 80 employees at Cisco Systems’ campus in RTP are going to lose their jobs if they do not find another position within the networking gear giant.
Calling the prospective layoffs a “limited realignment of resources,” a Cisco spokesperson told Local Tech Wire and WRAL.com that the employees were notified Thursday. They will be given the opportunity to find another job within the company.
“We anticipate a small number will be deployed,” the spokesperson added while pointing out that redeployments will be based on individual skill sets and open positions.
Other layoffs were announced worldwide by Cisco (Nasdaq: CSCO) , but the RTP spokesperson declined to identify where or how many people were affected. Cisco has insisted its job actions are not a massive layoff. Details about the latest reductions will be disclosed in early August, the spokesperson added.
According to media reports, some 700 positions are being cut at Cisco's California headquarters.
Cisco employs some 4,500 people in RTP, including some 3,650 full-time. The rest are contractors.
The latest action is part of a continuing restructuring at Cisco that began earlier this year. In February, some 30 Triangle workers were laid off.
"This limited restructuring is part of our ongoing, targeted realignment of resources and was previously discussed on our fiscal second and third quarter 2009 earnings calls," the company said in a statement.
"While Cisco constantly manages its business priorities, resources and overall employee alignment as part of our overall business management process, we are sensitive to the impact these decisions have on employees during this challenging economic environment. We are doing everything possible to minimize the impact on employees affected by the limited restructuring. "
Laid-off workers will receive severance and career transition assistance, according to Cisco.
The latest Triangle employment numbers as provided by Cisco show that the company’s North Carolina presence had actually increased over the past two years. In 2007 and 2008, Cisco said it employed around 3,200 people locally.
Cisco disclosed plans in advance to cut expenses by $1 billion in 2009.
In a Feb. 4 conference call, Cisco Chairman and Chief Executive Officer John Chambers declined to describe the latest restructuring as layoffs.
The Cisco job action is the latest to hit high-tech firms in the Triangle. Others who have cut employees include IBM, Lenovo, Sony Ericsson and Nortel, which is in bankruptcy.