11/30 18:26
Cisco Plans to Increase Productivity of Workforce by Almost 50%
By Justin Baer
quote.bloomberg.com
Scottsdale, Arizona, Nov. 30 (Bloomberg) -- Cisco Systems Inc. Chief Financial Officer Larry Carter said the biggest maker of computer-networking equipment plans to increase the productivity of its workforce by almost 50 percent.
Cisco's goal is to generate $700,000 in sales for each of its employees, a milestone that the San Jose, California-based company has missed in the past four quarters as demand for telecommunications gear faded, Carter said during a presentation at a Credit Suisse First Boston investor conference in Scottsdale, Arizona.
``That's our goal to get back to,'' Carter said.
In the fiscal first quarter, which ended Oct. 27, productivity totaled $471,000 per employee. Cisco will boost that figure by paring its workforce and by increasing sales at or above the industrywide average, Carter said.
Cisco isn't replacing employees who leave voluntarily and is hiring new ones infrequently, Carter said. While the company doesn't plan major job cuts, it's eliminating some positions selectively, based on performance, he said.
``We're driving our headcount down each quarter,'' he said.
The company currently has about 37,500 employees.
Cisco's shares today rose 55 cents to $20.44. They've slid 57 percent in the past year. |
