A net cut of 9% of the workforce, for a total of 6.500 fewer jobs. This is what Cisco Systems announces, in a particularly difficult year for the company. A decision that could have been influenced by the decline in the market share of the networking systems company, whose shares on the stock market have lost 20% of their value, against the growth recorded by competitors, such as Hewlett-Packard.
As regards redundancies, 2.100 employees have been offered early retirement and will leave their jobs voluntarily, the rest will be made redundant. The sale of some business areas will instead absorb another 7%, which will be transferred to other companies. In the first quarter of the year, Cisco lost more than six percentage points to 54,2% in the Internet router market. The same decrease was recorded in that of switches, in which the company fell to 68,5%.
