Cisco Rumored To Layoff Workers In Shanghai
Cisco, the American internet giant, is rumored to be laying off workers in its Chinese branch. According to insiders, “Right now there have been layoffs in Shanghai department.”
The incident fermented with more rumors appearing on social media. There is a number of screenshots circulating online supposedly revealing that Cisco’s Shanghai branch is laying off employees, with a compensation plan of N+7 (the number of years working for the company, plus 7 months’ worth of salary), “more than 1 million per person”.
“The screenshot on the Internet is not true! As a tech company, adjustment of Cisco’s global business is normal, which will affect some employees. The Cisco Shanghai R&D Office hasn’t been affected. Yesterday, several new directors and technical leaders were announced to be promoted,” Cisco China team disclosed to 36 Kr, a Chinese tech media.
In early May, American IT giant Oracle faced similar circumstances when it began to lay off employees in its China R&D center. The first batch affected more than 900 employees, of which more than 500 were from Beijing R&D Center. The compensation plan offered by Oracle China was said to be N+6.
SEE ALSO: Oracle’s Severance Compensation Has Taught Chinese Tech Firms a Great Lesson
The retreat of foreign companies from China has to do with the ongoing trade war. Earlier this May, Cisco stated that it had slashed its manufacturing in China in anticipation of higher import tariffs levied by the US, to avoid the effects of the deepening trade war.
