Charities Could Gain From Cisco Layoffs

By NICOLE WALLACE

At a time when many charities are worried that decreased earnings and turbulence in the stock market will dampen corporate philanthropy, organizations in Silicon Valley are poised to benefit from layoffs at Cisco Systems.

Last month, Cisco announced that it was eliminating 8,500 positions. The San Jose, Calif., computer-networking company has, however, set up a program that will give those employees the option of working at a nonprofit organization in their area for a year — on Cisco’s tab — to help those organizations integrate the Internet into their operations.

Employees who commit to a year of service will receive one-third of their former salary, full benefits and vesting, and a two-month grace period at the end of the program to try to find a position at the company.

Michael Yutrzenka, senior manager for community investment, says that during what is a very difficult time for the company, “This is one of the ways that we could not only help the employees themselves that are impacted by the layoff, but help the community in the process.”