Networking gear maker Cisco system Inc. may cut about 5,000 jobs in August in hopes of saving $1 billion, Gleacher analyst Brian Marshall said in a research note.
In a research note July 11, Gleacher analyst Brian Marshall said the job cuts could rival the 8,000 layoffs that Cisco initiated in 2001, soon after the Internet market crash. In this case, the 5,000 job cuts to the company’s 73,000-strong workforce would be painful but necessary, Marshall said, saving Cisco about $1 billion annually.
They also would mark only one of several steps the analyst said Cisco has to make to ease Wall Street concerns.
The company is also reorganizing management to streamline its business and focus on areas of growth, Cisco said in May. To speed decision making, the company organized field operations into three geographic regions and reformed a council-style management structure.