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Saturday, July 30, 2011

Cisco to axe 16% of its workers

http://money.cnn.com/2011/07/18/technology/cisco_layoffs/index.htm


The link and video above discuss how Cisco Systems is currently going through a tough time.  Cisco is aiming to cut $1 billion in annual operating expenses.  This usually means that the first thing to go is people.  Cisco is a company known for having a lot of employee turnover with pink slips being handed to employees if there performance is in the decline.  

This is troubling news for a company that has been very successful with their video conferencing equipment, Telepresence.  Cisco also dropped the flip video camera from production early in the year to cut costs.  

I think this is just a result of the current recession but having to lay off additional employees does not look good no matter what situation a company is in.  Senior leadership, led by John Chambers is taking a lot of heat too and this could have been a move from Chambers to try and keep his job.

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