Unemployment figures are about to take another hit, with Cisco rumored to be on the verge of laying off as many as 10,000 employees, or about 14 percent of the company’s staff. The cuts could come as early as late August, according to two unnamed sources.
CEO John Chambers’ goal is to revive profit growth and bring immediate profits to shareholders. The layoffs will save the company as much as $1 billion in the 2012 financial year and boost earnings by about 8 percent. At present, 2011’s revenue is expected to increase by only 7 percent, considerably less than the 11 percent growth that the company reported in 2010.
Cisco is reluctant to release information about the possible layoffs at this stage, saying only that it “will provide additional detail on the cost reductions, including layoffs, on our next earnings call,” which is scheduled for August. That gives employees about two months to get their resumes in order.