On the heels of news that hiring in the tech industry is responsible for a rise in California's employment picture, one of the state's larger employers is announcing job cuts.
Cisco Systems, the San Jose-based networking giant, says it will trim two percent of its workforce, or 1,300 people. The company says the cuts are part of a larger cost-cutting measure, aimed at saving a billion dollars over several years.
While the tech industry as a whole has been hot lately, the networking business has become somewhat commoditized - as in, it's expected that Cisco will sell a ton of gear, ho hum. Not a good sentiment when you're an investor. Cisco's stock, once so high that the company was the world's most valuable, has been stagnant for years. It's half as high as it was even five years ago. Investors just don't see it as a growth company anymore.
The company is not saying which cities the layoffs will come; you can bet at least some will hit Cisco's San Jose headquarters. The company released a statement calling the cuts, "a focused set of limited restructurings" to save money.
Cisco shares dipped a bit in after hours trading as the news got out.
Scott can be found on Twitter: @scottbudman