Cisco System Inc., the world’s largest maker of computer networking equipment, will cut its workforce by as much as 9 percent, trimming 6,500 jobs.
The cuts include 2,100 employees who took a voluntary early-retirement program, Cisco said today in a statement. As part of the move, the company expects to record pretax restructuring expenses of $1.3 billion.
Those in the U.S. and Canada will get the word in the first week of August. Other global workforce reductions will occur soon after in compliance with local regulations, Cisco officials said.
The San Jose, Calif., company has reported two straight quarters of lower profits. Chief Executive John Chambers has said the company’s execution has disappointed investors, and disclosed the need for staff reductions in May.