U.S. networking giant Cisco Systems has announced an investment of US$4 billion in the modernization of its manufacturing facilities in Mexico.
Over the next two years, the investment will create 270 direct and 77 indirect jobs at Cisco’s Mexican facilities, as well as 4,830 direct and 1,105 indirect jobs at suppliers’ factories.
“These facilities are expected to supply products to more than 110 countries, and directly complement our manufacturing efforts in the U.S. and around the world,” the company’s Chief Executive Chuck Robbins wrote in a blog post. “Mexico is rapidly becoming one of Latin America’s economic success stories.”
The news follows Cisco’s decision to cut worldwide jobs by 7%, the savings from which it intends to invest into emerging sectors, such as connected services and cloud computing, according to Bloomberg.
In Mexico, the company produces routers, servers, switches, videoconferencing screens, and wireless access points among other products.
Operating since 1993, Cisco has 1,000 employees in Mexico. The company has also contributed greatly to Mexico’s growing pool of tech talent, with hundreds of Cisco Networking Academies providing technology training to thousands of people across the country.
“The Networking Academy program in Mexico is one of our largest worldwide, with more than 50,000 students enrolled in 300 academies around the country,” Chuck Robbins said in his blog.
Last year, Cisco launched a global services center in Mexico City, its fifth such center in the world.