Cisco Systems, one of the region’s biggest employers, saw its stock close today at its highest point since February, a sign that CEO John Chambers' reorganization of the company is impressing investors.

This latest bump came after the company reported solid first-quarter earnings Wednesday.

Net sales for the three months that ended Oct. 29 were $11.3 billion, up from $10.75 billion the prior year. Minus one-time charges, net income was $2.3 billion, or 43 cents per share, compared to $2.4 billion, or 42 cents per share, a year ago.

That beat the consensus among analysts who cover the company of 39 cents per share.

Cisco Systems, one of the Triangle's biggest employers, said today it notified about 170 employees in Research Triangle Park they will be laid off as part of the computer networking company's strategy to reduce global operating expenses by $1 billion next year.

Additionally, the company said 2,100 employees agreed to take early retirements and 1,200 contractors are slated for elimination. Cisco did not disclose RTP-specific details for the retirements and contractor reductions.

Most of the affected workers will leave in the first quarter of 2012, suggesting that the head count at Cisco's RTP complex could go down by several hundred from a peak of 4,900 this summer. The company has said it expects to shed about 6,500 workers globally to reduce overhead and adjust expenses to new economic realities.

The company made the staff cut disclosures in connection with its fourth-quarter earnings release, in which Cisco beat analyst expectations and calmed investor anxiety after a string of weak quarters.

Cisco Systems, one of the Triangle's biggest employers, has been able to trim $7 billion from its income tax bill since 2005 by booking roughly half its global profits at a Swiss subsidiary that employs just 100 people.

Bloomberg News laid out Cisco's tax-avoidance strategy, which experts say is legal, in a news article issued today. The Silicon Valley computer networking company has used the tax strategy to reduce its international tax rate to about 5 percent, Bloomberg reported.

As part of the strategy, Cisco and other U.S. companies move their taxable income from this country and from other operations to tax havens. In this country, Cisco reported an effective corporate income tax rate of 17.5 percent last year.

Cisco, which employs over 35,000 worldwide, has 4,900 employees and contractors at Research Triangle Park.

Cisco Systems, one of the Triangle's biggest technology employers, plans to slash $1 billion in annual expenses as it undertakes a major reorganization that could result in significant job losses locally and worldwide.

CEO John Chambers is trying to revamp the company's operations to offset slowing sales, boost profit and restore investor confidence. As the company reported its latest quarterly earnings this afternoon, Cisco also gave a financial forecast for the current quarter that missed analyst expectations.

Cisco has previously disclosed that it's offering early retirement buyouts to thousands of U.S. and Canadian workers. Chambers told Wall Street analysts on a conference call today that various cost-cutting moves will save about $1 billion, but didn't say how many jobs he expects to eliminate.

That savings represents about 6 percent of annual expenses. Cutting that much of Cisco's workforce could amount to 4,400 of the company's 73,400 employees.

The San Jose, Calif.-based company employs about 4,900 workers and contractors at its campus in Research Triangle Park. A 6 percent cut in RTP could mean 300 jobs.

Cisco Systems began offering early retirement buyouts to some U.S. and Canadian employees this week, the latest cost-cutting effort by the technology company.

Cisco didn't disclose details of the program, including how many people will get an offer, or how many the company hopes will take it.

But hundreds could be affected at the California company's Research Triangle Park campus, where it employs about 4,900 people. The minimum age for the buyouts is 50 for Cisco workers with 10 years experience with the company.
 

John Chambers sent shivers down the spines of 4,800 high-tech workers in the Triangle.

The CEO of Cisco Systems warned employees in a memo on Monday that the technology company needs to make major changes to improve its business and focus its strategy. Chambers didn't specify what steps he's planning, but wrote that "you will see Cisco make a number of targeted moves in the coming weeks."

"Today we face a simple truth: We have disappointed our investors and we have confused our employees," Chambers wrote. "Bottom line, we have lost some of the credibility that is foundational to Cisco's success -- and we must earn it back. ... It's time for focus."

When President Barack Obama sits down with the heads of the nation's biggest corporations for a business summit Wednesday, he'll meet with the bosses at some of the Triangle's biggest employers.

The 20 business leaders Obama is hosting in Washington will include John Chambers, CEO of Cisco Systems, and IBM's Samuel Palmisano. The two technology companies employ an estimated 15,000 workers and contractors in this area.

The CEOs' opportunity to bend the Commander-in-Chief's ear on the tax code, export imbalances, national deficit, and other pressing issues could affect thousands of employees, as well as the fates of the unemployed, if the talks ultimately result in hiring or other economic activity.

It's a grim day for Cisco investors. Or maybe it's just a buying opportunity.

Shares of the technology bellwether fell as much as 17 percent this morning after it gave a sales and profit forecast late Thursday that disappointed Wall Street.

The stock fell $4.08 to $20.41 at 9:33 a.m. New York time in Nasdaq Stock Market trading, Bloomberg News reported. That was the steepest intraday drop since Oct. 5, 1998.

The earnings warning also raised questions about the strength of the shaky economic recovery, especially for tech spending. It is dragging down other tech stocks and the broader stock market.

Cisco's investors include many of the more than 4,800 employees and contractors the company has at its campus in Research Triangle Park.

Cisco Systems reported stronger results this afternoon, another sign of renewed spending on technology equipment.

The world's bigger maker of computer networking equipment is one of the Triangle's largest tech employers, with about 4,800 workers and contractors at its Research Triangle Park campus. It's also considered a bellwether for the broader tech sector.

The California company's total sales rose to $10.75 billion, up about 19 percent from a year earlier. Its earnings per share of 42 cents exceeded Wall Street expectations.

The results were tempered by CEO John Chambers, whose projections routinely influence the broader stock markets. In a prepared statement, he noted that Cisco has seen "capital spending moderate in some areas of our business."

Cisco Systems, one of the Triangle's larger tech employers, plans to start paying a dividend to shareholders before the end of the year, according to Bloomberg News.

The news service said CEO John Chambers made the announcement today at the company's annual analyst conference in San Jose, Calif.

Chambers said the company was considering a dividend yield of 1 percent to 2 percent.

Cisco stock jumped as much as 4.3 percent today. It was trading at $21.70, up 44 cents at 3:30 p.m.

Cisco has about 4,700 employees and contract workers in RTP.