Cisco lays off 600 to 700 workers at headquarters

SAN JOSE, Calif. - Cisco Systems Inc. laid off 600 to 700 workers at its company headquarters and an undisclosed number of employees at other locations this week, bringing the world's largest maker of computer networking gear closer to its goal of reducing its work force by about 2,000 positions.

The majority of the cuts, reported earlier by The Wall Street Journal, were made at Cisco's San Jose headquarters Thursday, adding to the 447 California workers Cisco had already laid off since the end of February, according to notices filed with the state.

As of the end of April, Cisco employed about 66,560 people. The company would not say how many people it has laid off outside of California.

Cisco also would not say what groups have been affected. Some workers may find new jobs at the company. The rest will be offered severance packages and help finding other work.

"We are doing everything possible to minimize the impact on employees affected," spokeswoman Kristin Carvell said in a statement.

The company said in February that it planned to cut 1,500 to 2,000 jobs "in the near term." Cisco has also stopped hiring for most jobs as part of a plan to save $1 billion in the 2009 fiscal year, which ends in late July.

In February, CEO John Chambers told analysts that "the odds are reasonable" that Cisco's cost-cutting and layoff plans would be enough to head off even deeper job losses.

Cisco shares gained 39 cents, or 1.9 percent, to close Friday at $20.51.

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