Cisco increases job cuts to 6,500

SAN FRANCISCO - Cisco Systems Inc. is cutting 6,500 employees - about 9 percent of the networking equipment maker’s workforce - as it follows up on a plan announced in May to eliminate thousands of jobs to reduce costs and raise profits.

Cisco, which has about 73,400 employees worldwide, said yesterday that it was laying off 4,400 people. Another 2,100 employees chose to leave as part of an early-retirement program. The company said the cuts include the elimination of 15 percent of its employees at and above the level of vice president.

Cisco said the cuts will cost it $1.3 billion in severance and termination benefits. The company plans to take the charge over several quarters. It will take $750 million of that, including $500 million for the early-retirement program, during the current quarter. Cisco will inform employees whose jobs have been cut in the United States, Canada, and some other countries during the first week of August.