Cisco cutting 40 Petaluma jobs
Losses of engineers at development center part of restructuring, also affecting 2 other locations
Published: Saturday, December 10, 2005 at 3:00 a.m.
Last Modified: Saturday, December 10, 2005 at 2:42 a.m.
Computer networking giant Cisco Systems is cutting 40 jobs at its Petaluma development center, part of a corporate restructuring that also affects two other Cisco locations.
Cisco spokeswoman Abby Smith wouldn't confirm the number Friday but acknowledged there will be job cuts in Petaluma.
"This is a normal realignment of our resources," she said. "It's part of our long-term business strategy."
The cuts will eliminate just over 10 percent of Cisco's workforce in Sonoma County. The company employs about 350 people in Petaluma, down from 600 at its peak in 2002.
Most of the affected workers are engineers in Cisco's routing-technology group, according to Smith. They can apply for other jobs with Cisco, she said.
"A lot of these people are very highly skilled, so we are going to be trying to find another place for them," Smith said. .
She said employees who leave the company will be eligible for severance packages.
The cuts were announced Thursday, and they'll occur over the next 60 days, Smith said.
Cisco also cut jobs in San Jose and Richardson, Texas, but Smith wouldn't disclose the number. San Jose-based Cisco has about 40,000 employees worldwide.
Cisco acquired the Petaluma optical-networking business in 1999 from Cerent Corp. for $7.3 billion.
At the five-building complex on North McDowell Boulevard, Cisco develops fiber-optic networks that deliver voice, video and high-speed data over the Internet.
Its customers include large telecommunication companies such as AT&T and British Telecommunication.
Smith said Cisco isn't giving up on the optical-networking division.
"We are still very committed to the optical business," she said. "We still are committed to the Petaluma area."
Cisco, the world's largest maker of routers and switches that direct Internet traffic, reported $6.5 billion in revenues for the first quarter ending Oct. 29, a 9.7 percent increase over the same period last year.
Net income was $1.3 billion, compared to $1.1 billion for the same quarter last year.
Last month, Cisco acquired Scientific-Atlanta, the world's second-largest maker of TV set-top boxes for unscrambling cable signals.
The $6.9 billion acquisition gives Cisco the ability to sell digital television equipment that transmits high-definition programming, video-on-demand and interactive services.
This story appeared in print on page 1
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.
Comments are currently unavailable on this article