Cisco Systems announced it will be reducing its work force by about nine percent, however it is unclear how many, if any, employees in Hawaii will be affected.

Out of roughly 73,000 jobs worldwide, 6,500 will be cut, with 2,100 of those leaving through a voluntary retirement program. There will be 15 percent fewer executive positions (at the vice president level and higher) as well. The 6,500 layoffs are much more than the six percent predicted back in May.

Cisco Systems Inc. is the world¹s largest multinational designer and seller of electronics, voice, networking, and communications technology and services.  Cisco says the reason for its downsizing is to reduce costs and raise profits, in pursuit of becoming a more competitive company.

The job cuts will cost Cisco $1.3 billion in severance and termination benefits. Cisco plans to take the charge over several quarters. It will take $750 million, including $500 million for the early-retirement program, during the current quarter. Employees in the U.S., Canada and other countries will find out who has been cut during the first week of August. The remainder of the cuts will be made later to comply with the local laws of San Jose, California.