Cisco cuts 4,000 jobs in restructuring effort
- 14 August, 2013 23:09
Cisco today said it would slice 4,000 jobs -- or 5% of its workforce in a global restricting effort. Shares of the network equipment giant fell nearly 10% after-trading hours.
The news came after Cisco reported fiscal fourth-quarter earnings that stated revenue rose 6% to $12.4 billion in the quarter, which ended July 27. Net income rose even more steeply, up more than 18 percent to $2.3 billion. Counted as earnings per share, the company's profit went up almost 17 percent to reach $0.42 according to an IDG News Service report.
"My confidence in our ability to be the #1 IT Company is increasing," said CEO John Chambers in a statement. "Now, more than ever, our customers and our partners want Cisco's help navigating the inconsistent global landscape successfully. They recognize the benefit of a partner who is not only the leader in their product categories, but can bring technologies and solutions together in an architecture to lower operating costs, reduce time to results, and future proof their investments."
Last year's fourth quarter came amid widespread economic woes in Europe and cautious optimism from Cisco about signs of growth in the U.S. The company's core switching and routing business was flat during that period.
For its full fiscal year, Cisco's revenue rose 5.5% to $48.6 billion and profit increased almost 25 percent to $1.86 per share.
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