Cisco Lays Off Nearly 500 Workers in San Jose, Milpitas

Cisco Systems has laid off nearly 500 workers in San Jose and Milpitas, according to a state filing.

It’s the company’s second round of layoffs within the past year, and the news Wednesday came on the heels of an earnings report that exceeded Wall Street expectations.

Most of the cuts are in the company’s engineering division.

Cisco released a statement saying, “It’s important that we make decisions to continually ensure that our investments and resources are aligned with strategic growth areas of the business and customer demands.”

The San Jose-based seller of routers, switches, software and services on Wednesday reported fourth-quarter earnings of $2.21 billion, or 83 cents a share after adjustments for pretax and stock option expenses. That edged analysts’ estimates of 82 cents a share.

Cisco shares closed Wednesday at $50.61, a rise of 15% in the past 12 months.

Cisco’s statement went on to say it is helping laid off employees find other positions in the company.

Wire services contributed tio this report.

This post was originally posted at http://www.nbcbayarea.com/news/local/Cisco-Lays-Off-Nearly-500-Workers-in-San-Jose-Milpitas-543606311.html.

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