The Dow component announces plans to cut 2% of its workforce in the latest phase of its long-running restructuring effort.
SAN JOSE, Calif. (TheStreet) -- Cisco(:CSCO) Monday said it plans to cut 2% of its workforce in the latest phase of its long-running restructuring effort.
"We are performing a focused set of limited restructurings that will collectively impact approximately 2% of our global employee population," explained a Cisco spokesperson, in a statement emailed to TheStreet. "These actions, subject to local legal requirements, including consultation where required, are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world."
"We routinely review our business to determine where we need to align investment based on growth opportunities," she added. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco."
At the end of its fiscal third quarter in May, Cisco had 65,223 employees worldwide.
After enduring a turbulent period marred by poor execution and consumer spending pressure, Cisco's turnaround appeared to be underway in recent months. The latest job cuts, however, indicate that there are still hurdles in Cisco's path.
Cisco underwent a massive corporate overhaul last year, which involved layoffs and widespread restructuring, in an attempt to get back on track. Last July, the company announced 6,500 job cuts, and the transfer of another 5,000 employees at its cable box unit in Juarez, Mexico to contract manufacturer Foxconn.
Shares of Cisco, which have tumbled 11.12% this year, closed down 1.77% at $16.07 on Monday.
The company is slated to report its fiscal fourth-quarter results on Aug. 15.
--Written by James Rogers in New York.
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