Today, Cisco will cut 6,500 jobs as it plans to boost earning by trimming expenses. It hopes to save about $1b per year after this process. The whole plan is to get the number to about 10,000. This is an old news, at least to Tekedia readers.
What is news is what EETimes reported.
Cisco said Foxconn International Holdings Ltd. agreed to buy Cisco’s set-top box manufacturing facility in Juarez, Mexico. Financial terms of the deal were not disclosed. But Cisco said roughly 5,000 people employed at the site would become Foxconn employees in the first quarter of 2012.
The 5,000 employees transferred to Foxconn as part of the agreement were not including in the 6,500 job cut announced Monday, Cisco said.Cisco assumed ownership of the Juarez plant when it bought Scientific Atlanta in 2006, the company said. The facility manufactures video and telecommunications equipment for the service provider market.
“After working closely with Foxconn for many years, we know they are a strong strategic fit with Cisco’s long-term goals and are committed to a successful future in North America, said Gary Moore, Cisco executive vice president and chief operating officer, in a statement. “We remain fully committed to our service provider customers and partners, and will continue investing in existing and new video platforms, including set-top-boxes, as part of our Videoscape vision.”
It is surely a huge sign how things happen. Cisco selling assets to Chinese companies that few years ago could not make anything. This shows why nations have to invest in technology. Sooner or later, you become a player.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
When China pumped money assisting tech companies to stand, it never expected that it will be this easy. But today, China is buying not just real estate companies, but priced iconic assets of the US technology giants.
If African leaders could invest in technology, we will surely have an opportunity to compete at a higher level. This is the only way to improve growth and productivity in a more sustainable way.