At its Cisco Live event this past July, CEO Chuck Robbins said the company is looking at acquisitions – including its recent purchase of cloud and the Internet of Things (IoT) solution provider Jasper Technologies – and a move towards subscription-based models for growth. It plans to reinvest “substantially all” of the layoffs’ cost savings into those areas.
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The job losses are lower than those first feared after a CRN report on Tuesday claimed around 14,000 staff would be laid off.
The Silicon Valley company announced the cuts – about 7% of its global workforce – during its fiscal fourth-quarter earnings report. Overall sales hit $12.6 billion for the quarter, up 2% from the same period a year earlier.
Cisco has announced a restructuring plan that will see up to 5,500 jobs go as it revealed its full-year revenues and profits increased. It groups its products and technologies into the various categories, such as Switching, Next-Generation Network (NGN) Routing, Collaboration, Service Provider Video, Data Center, Wireless, Security, and Other Products. Revenue fell to US$12.64 billion from US$12.84 billion.
Cisco Systems Inc is laying off about 14,000 employees, representing almost 20 percent of the network equipment maker’s global workforce, technology news site CRN reported, citing sources close to the company.
Robbins, who replaced John Chambers in July a year ago, has been steering the company toward more software and subscription-based services, states a Reuters report. Cisco said charges associated with the restructuring would be about $700 million, of which $400 million would fall in the first quarter of fiscal 2017.
In after-hours trading, Cisco shares were off by nearly 1 percent at $30.47. Moreover, adjusted earnings per share (EPS) came in at 63 cents, surpassing its consensus estimate by roughly 3 cents.
One would think the company would have right-sized by now, but Cisco never actually seems to get much smaller. The core switch business grew 2 percent United States dollars 3.8 billion, while routing revenues fell 6 percent to USD 1.9 billion.
No details have been provided on the geographical spread of proposed job cuts.
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Cisco Systems, Inc.’s (CSCO), a part of Technology sector and belongs to Networking & Communication Devices industry; ended its day with a loss of -1.29% and finalized at the price of $30.72.
