Cisco to cut workforce by 11,500

NEW YORK (Reuters) - Cisco Systems plans to cut its workforce by 11,500 employees as part of its plan to cut annual expenses by $1 billion and revive its business.

Cisco said on Monday that it would cut 6,500 employees. Of those, 2,100 employees will take early retirement.

The company also plans to sell its manufacturing facility in Juarez, Mexico , to Foxconn and transfer 5,000 employees to the contract manufacturing company as part of the deal.

Analysts had predicted thousands of job cuts after Cisco said in May that it planned to reorganize the company which has been losing ground in the network equipment business. The company announced more cuts than some analysts expected.

The job cuts will result in pre-tax restructuring charges "not expected to exceed $1.3 billion over several quarters," the company said.