Cisco Systems announces first layoffs in 17 years

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San Jose--Saying that business is much worse than expected, Cisco Systems Inc. said it will cut up to 17% of its work force. The maker of Internet equipment, which has many clients in the b-to-b space, said it would lay off 3,000 to 5,000 of its 44,000 employees and as many as 3,000 of its 4,000 temporary and contract workers. The cuts are the first in Cisco's 17-year history, which has been marked by rapid growth. The layoffs are expected to lead analysts to further cut their earnings estimates for Cisco, which recently said its projected revenue for the fiscal third quarter would be between $6.4 billion and $6.75 billion.
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