Cisco Systems is poised to lay off 1,022 workers at its San Jose, Calif., campus on Friday, according to a filing with the State of California. The cuts are part of Cisco’s previously announced plans to slash 4,000 workers from its payroll beginning this quarter.
Heading into an uncertain economic environment and determined to keep its expenses in check against any softening sales, the networking giant is cutting 5 percent of its workforce. Although Cisco is bracing itself for tough economic times, its fourth quarter performance was favorable: The company posted record revenues and its bottom line was profitable. In part, that may make the layoffs more difficult to understand for the workers who will be let go.
In September, Cisco began issuing layoff notices to its non-U.S. and Canadian workers, according to a report in the Triangle Business Journal. Earlier this month, its U.S. and Canadian workers began receiving layoff notices.
While it’s unclear how many of the 4,000 workers have received notices, Cisco previously said it planned to make a large portion of the cuts in the current quarter, which ends this month.
Some of the areas that will likely see fewer layoffs and more investment include Cisco’s security, mobility and cloud efforts. CEO John Chambers has cited those areas as where the company has the greatest potential for growth.
Any remaining cuts are expected to continue through Cisco’s fiscal year.