Cisco Lays Off Texas Broadband Telephony Employees

Updated: Cisco on Friday said in a filing that it planned to close its Broadband Telephony Services unit in the Richardson, Texas, office and will lay off 129 employees between Oct. 8 and Dec. 12. The networking giant filed this information with the Texas Workforce Commission on Oct. 10. In its letter to the commission, the company wrote, “A decision has been made by Cisco Systems Inc. to cease operations in its Broadband Telephony Services operating unit within its facility located at 2200 East President Bush Highway, Richardson, Texas 75082-3550.”

Richardson, near Dallas, is where Cisco opened a new data center in June 2008 as part of the company’s data center consolidation plans, and is also home to several other Cisco business units. For perspective, Cisco employed 66,129 people as of July 28, according to its filings with the SEC, so this is a small number of employees. I’ve asked Cisco for more details on the notice as I’m not sure if this is indicative of weak broadband telephony sales, the macroeconomic climate or simply a consolidation effort. I’ll update with more information once Cisco gets back to me. Updated below

Cisco issued a statement that read:

Cisco continuously evaluates its businesses to align human and capital resources to address key growth opportunities and improve efficiency. As part of our ongoing business processes, Cisco continually prioritizes its resource allocations to properly align those resources with revenue generation, profit growth, and market share opportunities, positioning itself for long-term sustainable growth.

That’s typical corporate speak for something that’s not making much money anymore, but I didn’t get information from Cisco on what the Telephony Broadband Services unit is . They’ve bought a lot of companies in Dallas over the years and my guess is these layoffs were related to one of those buys. Any help readers?

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