Cisco Advocates Early Retirement for Some Employees

By Erin Harrison April 29, 2011

In the midst of yet another restructuring, Cisco Systems is offering some employees the option to retire early in an apparent move to cut costs.

According to media reports this week, the San Jose, Calif.-based company is trying to re-focus on its core business of selling computer networking gear.

“Cisco spokeswoman Karen Tillman said Thursday that the networking equipment maker is offering voluntary retirement to some employees in the U.S. and Canada. She said the company has made such offers to workers in the past,” the Associated Press reported.

According to Tillman’s statement, Cisco is implementing several methods to control costs and “align investment dollars, and offering this voluntary early retirement program to those eligible employees in the US and Canada is part of our ongoing commitment to responsible business management,” she told the AP.

Cisco officials have not released eligibility guidelines for early retirement or how many employees the offer includes. According to a report in The Wall Street Journal, those eligible include employees aged 50 or older with a combined age and years of service of at least 60 as of July 8.

Earlier this month, TechZone360 reported Cisco was reorganizing the part of its business aimed at consumers and closing the Flip business.

Company officials said Cisco will focus on five key areas. These are: switching and services; core routing; video; collaboration; and architecture. The company said it will continue to provide services to current customers and partners of FlipShare under a transition plan.

“As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network’s ability to deliver on those offerings,” John Chambers, Cisco chairman and CEO, said in a company statement.

Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Jennifer Russell

Executive Editor, Strategic Initiatives

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