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80 employees at Cisco in RTP, hundreds elsewhere told they are losing jobs

Posted July 16, 2009

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— 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.

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  • chimera Jul 17, 2009

    Wow Mrschizzy, them dems sure are powerful. In 2 short years they are responsible for every catastrophe. I like how Newsweek describes this blaming of minorities for wanting to own a home:

    Let me get this straight. Investment banks and insurance companies run by centimillionaires blow up, and it's the fault of Jimmy Carter, Bill Clinton, and poor minorities?

    These arguments are generally made by people who read the editorial page of The Wall Street Journal, and ignore the rest of the paper—economic know-nothings whose opinions are informed mostly by ideology and, occasionally, by prejudice. Let's be honest. Fannie and Freddie, which didn't make subprime loans but did buy subprime loans made by others, were part of the problem. Poor congressional oversight was part of the problem. Banks that sought to meet CRA requirements by indiscriminately doling out loans to minorities may have been part of the problem. But none of these issues is the cause of the problem. Not by a long shot. Fr

  • xjrobx Jul 17, 2009

    Wow, jajs, I wanted to make that same comment but you beat me to it.

    It's ridiculous the lack of depth these posters espouse each time they press the enter key.

    Maybe if they continue to use puns with the word "Change" they'll be able to create a mental bridge and associate all things negative with Obama's campaign slogan. Whew, that shame and blame strategy is so effective now that people are becoming more educated on what actually happens when we don't "change" with the times and fall behind other nations in health care and education reform.

    Mrschizzy, the reason Bush is blamed for 911 is because he was given detailed information about the terrorist organization and decided his time was better spent golfing.

    I'm not saying that he definitely could've stopped it but it was a dereliction of duty not to follow up on something that the previous administration warned them about.

  • mrschizzy Jul 17, 2009

    President Obama did not create this mess. The root of the problem was the Democrat-controlled Congress during the last 2 years of Bush's term where they passed laws to make it too easy to get a mortgage for a house, despite many warnings about what would happen. As usual, they felt they knew better and that led us down a slippery slope that we are still going down. As for Bush failing to avoid 9/11 - he had only been in office not even 9 months. If you don't believe Obama created this mess in 7 months, then certainly you can't believe that Bush could have avoided 9/11? The fact is, security was made more lax during the Clinton admin and maybe if Clinton had taken Bin Laden's head when it was offered to him during his administration, maybe we wouldn't have ever had a 9/11. I don't know what any of that has to do with the topic at hand, anyway, since this article was not about 9/11...but I felt compelled to respond to the blatent idiocracy.

  • quit_whining Jul 17, 2009

    As I am a consultant for firms such as Cisco, I will tell you that my business has picked up dramatically this year. (Almost 2x last year). The reason, firms do not want headcount, they want to bring people in use them and then get rid of them...ie consultants!

    Get used to it people we are going to be individual contractors!! I saw this train coming years ago and guess what it has NOTHING to do with politics and EVERYTHING to do about MONEY! Brush up those resumes, start a C Corporation and go out and market yourself! Sure the money is great, however there are no benefits, so you better make sure you got yourself covered (insurance, retirement, healthcare), but then again we aren't a nation of self-supporters, we want OTHER people to take care of us. The sad state of today!

  • chimera Jul 16, 2009

    I'm tired of you Obama bashers. I didn't hear a peep from you people when Bush FAILED to keep us safe on 9/11 after knowing for 6 weeks that "Bin Laden Determined To Strike in U.S". (PDB, August 6, 2001.) Most of this is Bush's mess. They never counted the cost of 2 wars ( 1 totally unnecessary ). Wake up.

  • confederateyankee Jul 16, 2009

    I haven't been at Cisco in a couple of years now, but I have worked in corporate IT for most of my adult life, and companies do reevaluate their businesses to see what parts of their market are growing, and adjust accordingly. While you hear about the layoffs, I you don't hear much about the fact that they are hiring in other parts of the company, as well.

    You have to occasionally prune a plant for it to grow its best.

    All my best to those employees who were pruned today, and may you grow back stronger.

  • PaulRevere Jul 16, 2009

    H-1B workers should be laid off sent home and replaced by unemployed Americans.
    voteforchange2012

    Bwahahahaha! I'm sorry to laugh in your face because I know you meant it, and I totally agree with you, but it's not gonna happen.

  • da-doo-doo Jul 16, 2009

    Eeeee, You should check your facts. Stop relying on the mainstream media for all your info. You obviously can use a computer so start searching. Don't be so afraid that what you may find out will conflict with your beliefs. Try a beverage other than Kool Aid.

  • CrewMax Jul 16, 2009

    The realignment amount to shifting jobs overseas because, whomever you want to blame, tax situations (some of it capital gains increases promised by the current president), plus the problems that congress fails to address in education (allowing othe countries to surpass us) are causing the carrot of shareholder value to shift offshore. The business climate is set
    by the politicians, as evidenced by the sub-prime mess. I am thinking Ron Paul in 2012.

  • NCPACKER Jul 16, 2009

    Not shocking. Layoffs will only continue. Unemployment is more like 20% not 10% they keep saying.

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