Cisco To Lay Off 1,300 Employees In Latest Cutback

SAN JOSE (CBS/AP) -- Cisco Systems was preparing to lay off about 1,300 workers just a few months after the world's largest maker of computer networking equipment warned that growing economic uncertainty is making it tougher to close deals.

The cuts announced Monday represent about 2 percent of Cisco System Inc.'s payroll of 65,000 workers.

The upcoming layoffs represent the San Jose company's latest austerity measure. Last year, Cisco shed about 10,000 jobs as part of a program aimed at saving about $1 billion annually.

Cisco said it is shedding jobs to simplify its operations and adjust to changing economic conditions around the world. The company didn't specify what parts of its operations will be trimmed.

In May, Cisco CEO John Chambers made a series of cautionary remarks that alarmed investors.

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