More than 15% of Cisco's (Nasdaq: CSCO) managers will leave the company as a result of plans to cut expenses, Mexican online service El Economista reported.
Cisco decided to implement a plan that will see an annual operating expense cost reduction of US$1bn and around 6,500 employees leaving the company. This includes about 2,100 staff opting for early retirement.
Cisco announced on July 18 an agreement with Taiwanese electronics producer Foxconn technology group to sell its plant in Ciudad Juárez in northern Mexico, which employs 5,000 people. The plant's workers will keep their jobs and become part of the Taiwanese company, the company said.
The announcement that Cisco will sell its manufacturing facility in Mexico is "worrying," according to Frost & Sullivan consultant Marcelo Ruiz.