San Jose, Calif. -- Confirming widespread media reports, San Jose-based network equipment giant Cisco Systems said late Monday it plans to eliminate 6,500 jobs -- or 9% of its total workforce -- as part of a plan to reduce annual operating expenses by $1 billion. The figure includes 2,100 employees who have accepted early retirements, as well as the reduction of 15% of the company's executives at vice president-level and above. Impacted employees in the U.S. will be notified the first week of August. Cisco also said it will sell its set-top box manufacturing facility in Juarez, Mexico to Foxconn Technology Group. The approximately 5,000 affected employees will become employees of Foxconn.