Cisco slashes up to 5500 jobs

by Emilio Sims
in Money
— Aug 21, 2016

Share:

"Today, we announced a restructuring enabling us to optimise our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security, IoT, collaboration, next-generation data centre, and cloud".

According to reports, Cisco Systems is planning a mass jobs cull with 5,500 jobs in danger - or around seven percent of its global workforce.

Cisco's fourth-quarter net profit rose to United States dollars 2.81 billion, or 56 cents per share, from USD 2.32 billion, or 45 cents, a year earlier.

Cisco also posted earnings and revenue that topped analyst expectations on Wednesday. Earnings per share are also expected to increase just slightly from 59 cents with the high range of EPS for the first quarter at 60 cents.

Cisco's shares were down 1.2 percent at $30.38 in after-market trading on Wednesday. The company has made moves to diversify its revenue sources, such as the $1.4 billion acquisition of cloud-based internet of things service platform developer Jasper Technologies earlier in the year, but these hardware categories remain its biggest revenue streams.

Cisco's traditional business of switches and routers has been struggling with sluggish demand from telecom carriers and enterprise customers and intense competition from companies such as Huawei and Juniper Networks Inc.

Cisco had about 73,100 employees as of April. The strategy paid off: Security products and services saw a revenue gain of 16 percent in the last quarter of 2015. Microsoft Corp kicked off one of the largest layoffs in Tech history in July 2014 after it said it would slash 18,000 jobs.

"The shift to California is undeniable", said Eric Noble, president of the CarLab consulting firm.

The latest round of layoffs comes as the fourth workforce cut in about as many years for a company that was once integral to the internet boom.

The networking giant, while it generated $48.7 billion in revenue in 2016, is still getting left behind by its software-focused rivals. In addition, Mr. Robbins has been trying to switch the company's focus toward software and subscription business for quite some time. The company projected sales growth of as much as 3 percent in the period that ended in July, compared with analysts' projections for a revenue decline.

Share:

YOU MAY ALSO LIKE...

Powell told Clinton of his use of a private email at State
The State Department had a "disastrous" information system at the time and Powell said he felt the need to fix it. District Judge Emmet Sullivan turned that request aside, however, ruling "less burdensome" efforts were required.
8/21/2016

Wenger to unleash Giroud, Ozil on Leicester
And if they are wrong, they will have these players with high wages that can not get anywhere. "He (Thierry) is one of them". Arsene Wenger says Arsenal have found it hard to identify quality players to add to their squad in the transfer market.
8/21/2016

Mahrez signs new four-year deal with Leicester
Leicester City boss Claudio Ranieri is confident that midfielder Danny Drinkwater will soon put pen to paper on a new deal. Neither side could be separated on Saturday leaving them five points off the top of the table. "They can all win it".
8/21/2016

Burkini Ban Spreads in French Beach Towns
But Sisco Mayor Ange-Pierre Vivoni was adamant his decision was "nothing to do with racism, it's about protecting people's security".
8/21/2016

On Rajiv Gandhi's birth anniversary, West Bengal's Congress commits faux pas
Gandhi began his speech at the Rajiv Gandhi Sadbhavna award function here with a story of his own "short-lived musical career". Sonia Gandhi was on Friday discharged from the Sir Ganga Ram Hospital here after successfully undergoing a minor procedure.
8/21/2016

Bolt captures gold No. 9, bids adieu to Olympics
From left, Allyson Felix , English Gardner , Tianna Bartoletta and Tori Bowie ran a time of 41.01, the second-fastest ever. The American men, who have had chronic problems handling the baton in this event in recent Olympics, finished third.
8/21/2016

Thailand's Jutanugarn leads after first round, Park returns
The Australian challenge is headed by Minjee Lee who added an impressive second round of 67 to move within four of Park's lead. Or maybe it's just that the shorter LPGA Tour schedule makes an Olympic tournament in late summer that much more comfortable.
8/21/2016

Local Zika spreads to tourist hotspot Miami Beach
Women who want to get pregnant, along with their partners, are urged to use mosquito spray and condoms or avoid sex altogether. But the virus only causes mild, flu-like symptoms in most people, making it hard to confirm local transmissions, the CDC said.
8/21/2016

Turkish parliament approves deal ending rift with Israel
Israeli cabinet ministers in June approved the deal reached with Turkey, leaving Ankara to make the final ratification step. Ties were severed in 2010 after Israeli commandos stormed a Gaza-bound Turkish aid vessel in global waters.
8/21/2016

What flight of South Sudan's rebel leader means
South Sudan has been experiencing a fight between soldiers loyal to president Salva Kiir and sacked Vice President Riek Machar . The fighting erupted less than a year after a peace deal was signed to form a unity government and end the civil war.
8/21/2016