Cisco announces another restructuring, to cut 6000 jobs now

[Himanshu Arora]

Computer networking and communications giant Cisco has announced that it would cut up to 6,000 jobs, or 8 percent of its global workforce, as part of a major restructuring. The announcement came after the company announced its fourth quarter results, beating market expectations.

The company has already cut around 12,000 jobs between 2011 and 2013, with the last major restructuring happening in 2013.

This latest decision to reduce its workforce comes as the San Jose, California-based company continues to struggle in emerging markets as well as in its service provider video business. "The emerging markets lost momentum in Q4", said John Chambers, Cisco's chief executive. "We will exit this year pretty much with the same number of people we started the year with". Cisco's global workforce currently stands at around 74,000.

Chambers also said that the decision to cut jobs is aimed at making room for hiring staff in units that are growing. These include the company's data center, software, security, and cloud offerings. Although he didn't directly mention the name of the units that will bear the brunt of cuts, Chambers did mention as an example sales representatives in countries where revenues are shrinking.

The company reported a profit of $2.24 billion on sales of $12.36 billion, compared with a $2.27 billion profit and sales of $12.4 billion for the same period a year ago. Analysts had expected an earnings of 53 cents a share on $12.15 billion in revenue. Chambers said the company expects its Q1 revenue to be flat to up 1% from a year ago.

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https://www.techspot.com/news/57739-cisco-announces-another-restructuring-to-cut-6000-jobs-now.html

 

[Cycloid Torus]

I do wonder what has caused the loss of competitiveness in those countries reflecting decreased sales...... or am I being stupid and overlooking NSA backdoors and top end tech lost through foreign hacking.

 

[yRaz]

Meanwhile, in the board room.
"hey we just made tons of money, do you know what would be a great Idea?"
"no, what?"
"Let's fire a bunch of people so we don't have to share it! We can call it restructuring"
"great, lets do it"

 

[Snowden]

Run by Goldman Sachs?

 

[tipstir]

They make billions, have very high salaries for their executives, but yet want to cut out 6,000 to gain back more millions to increase the billions even higher. They get capital gains tax perks, they can even save more billions if they kept their HQ out of the USA. So all this to me is just another racket.

Cisco is no different that the rest in this sort of racket to get a bigger piece of the action!

 

[Guest]

Companies are made to make money, not provide jobs.

 

[yRaz]

Companies are made to make money, not provide jobs.

that isn't what the GOP has been telling us

 

[tonylukac]

I'm sure the ceo is a college graduate, as I've found many people working in companies/government who say they're college graduates aren't. If the profit was $4 billion would they cut 12,000 jobs? I don't sympathize with non college graduates in such positions as I had 4 bachelors degrees when I was 21.