Cisco Confirms More Layoffs
"We routinely review our business to determine where we need to align investments based on growth opportunities," a Cisco spokesperson said in an emailed statement. "Earlier this week, Cisco performed a limited restructuring that will impact approximately 500 employees which is less than 1 percent of our population globally. These actions are subject to local legal requirements, including consultation, where required."
Cisco did not specify which business segments will be affected. But a report from Network World suggests the cuts will impact Cisco officials overseeing its alliance with EMC. Sources reportedly said tensions grew between the two companies when EMC's subsidiary VMware purchased Nicira, a Cisco competitor in the software-defined networking space.
[Related: Cisco Revamps Certifications Program To Meet Demand For Security, Voice, Wireless Experts ]
The layoffs are the latest in a series of job cuts Cisco has made over the past two years, as part of its broader goal to trim $1 billion in expenses. In July, Cisco eliminated 2 percent of its workforce, or roughly 1,300 employees. In 2011, the company cut a more drastic 6,500 positions, 15 percent of which occurred at vice president-level or higher positions.
Meanwhile, a Cisco filing with the U.S. Securities and Exchange Commission revealed this week that Robert Lloyd, president of development and sales at Cisco, is selling more than 1 million of his shares in the company.
Lloyd plans to exercise up to 879,117 Cisco stock options that were originally granted in 2005 and are set to expire between June and September 2014. According to the filing, Lloyd will sell an additional 198,313 shares of Cisco restricted stock units.
The SEC report noted that Lloyd is selling his shares under the 10b5-1 rule, which allows insiders of publicly traded companies to make pre-arranged plans to buy or sell company stock.
Lloyd is expected to pay between $17.86 and $19.24 per share, with Cisco currently trading at just over $20.84, meaning he would take around $2 million. Lloyd could also take an additional $4 million from the restricted shares, according to a Business Insider report.
PUBLISHED, MARCH 28