Cisco readies US$ 4 billion to secure contracts with manufacturers in Mexico
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San Jose, CA-based technology company Cisco Systems is investing US$ 4 billion in Mexico over the next couple of years to upgrade its factories and increase production, Bloomberg reports, citing sources.
The investments would involve securing contracts with manufacturers, rather than spending money directly on factories. The $4 billion figure also includes spending that's already been planned.
The move comes as Cisco plans to cut 7% of its workforce. Savings from the job cuts will be invested in newer businesses, such as cloud computing, Bloomberg added.
Cisco started operations in Mexico in 1993; it has more than 600 employees working on sales, services and support in offices in Mexico City, Guadalajara, and Monterrey, and in Ciudad Juarez focused on Cisco manufacturing operations. Business partners employs over 5800 workers dedicated to Cisco production.