Skip to footer

Cisco to cut up to 6,000 jobs starting this fall

Facing flat revenues and tough competition, network equipmentmaker Cisco says it will lay off up to 8 percent of its workforce. The restructuring will cost Cisco up to $700 million.

|
Mike Blake/Reuters/File
A Cisco office is pictured in San Diego. The network equipmentmaker announced it would lay off up to 6,000 workers during a conference call with analysts on Wednesday Aug. 13, 2014.
  • By Staff Associated Press

| NEW YORK

Cisco said Wednesday that it will lay off up to 6,000 workers, or 8 percent of its workforce, as part of a restructuring.

The company, which makes routers, switches and software, said the layoffs will affect workers in operations around the world. The announcement was made during a conference call discussing its fiscal fourth-quarter earnings.

The San Jose, California-based company on Wednesday reported a 1 percent decline in profit, to $2.25 billion, as revenue dipped to $12.36 billion from $12.42 billion. Its adjusted earnings for the three months ended July 26, its fiscal fourth quarter, came to 55 cents per share, which was two cents more than analysts expected, according to Zacks Investment Research.

During the conference call, Chief Financial Officer Frank Calderoni said the company estimates pretax charges of up to $700 million, with about $250 to $350 million recorded in the current quarter, for the restructuring.

Shares fell 25 cents, or 1 percent, to $24.95 in after-hours trading. The stock has risen 12 percent this year.

Here is an excerpt of the Cisco conference call where Mr. Calderoni announced the job cuts:

[W]e will be taking a restructuring action in FY15 that will be focused on continuing to invest in growth, innovation and talent while managing cost and driving efficiencies. These actions will impact up to 6,000 employees representing approximately 8% of our global workforce. We expect to take these actions starting in Q1 FY15 and currently estimate that we will recognize pre-tax charges to our GAAP financial results of up to $700 million. We expect that approximately $250 million to $350 million of these charges will be recognized during the first quarter of FY15 with the remaining amount recognized during the rest of the fiscal year.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.
editor@csmonitor.com
Subscribe
Mark Sappenfield
Editor

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

Subscribe to insightful journalism

QR Code to Cisco to cut up to 6,000 jobs starting this fall
Read this article in
https://www.csmonitor.com/Business/Latest-News-Wires/2014/0814/Cisco-to-cut-up-to-6-000-jobs-starting-this-fall
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe