Cisco Cutting Costs, Jobs

SAN JOSE, Calif., March 14 -- Cisco Systems Inc. announced measures to reduce expenses in order to address the changing economic environment. The measures include a reduction in workforce and other expense related items. The reduction in workforce will include a reduction of 2500 to 3000 temporary and contract workers and 3000 to 5000 regular employees. As a result of these workforce reductions, Cisco is anticipating a one-time charge of $300 to $400 million by the end of the fourth quarter of fiscal 2001.
"We're taking these steps because of the continuing slowdown in the US economy and initial signs of a slowdown expanding to other parts of the world. We also now believe that this slowdown in capital spending could extend beyond two quarters," said John T. Chambers, president and CEO of the company.