Cisco announced 6000 job cuts: up to 8% of total employees


on August 14, cisco announced Wednesday, as part of a massive restructuring, job cuts will be up to 6000 people.

on the reported quarterly results after cisco announced the layoffs decision. Conducted four quarter beat analysts’ estimates.

cisco CEO John Chambers (John Chambers), said cisco can must focus on the growth of the field, and become “number one IT vendors”. He said to the transformation of cisco’s “requires that we make very difficult decisions”.

the cuts to about 8% of the total number of cisco employees. Cisco is expected to be recorded in the fees associated with the cut up to 700 million dollars. Cisco now face challenges in emerging markets, video business and the service providers also performed poorly. A year ago, cisco has said it will cut 4000 jobs, accounting for 5% of the total number of staff.

cisco reported fourth-quarter earnings, according to the revenue of $12.36 billion and earnings per share is 55 cents. Analysts on average expected, conducted four fiscal revenue was $12.15 billion, 53 cents earnings per share, and in the same period last year sales of $12.42 billion, 52 cents earnings per share.

cisco after U.S. markets closed on Wednesday unveiled fourth-quarter earnings. On Wednesday, the U.S. stock market in after-hours trading, cisco stock price volatility.

in May this year, cisco’s quarterly results beat analysts’ expectations, and earnings outlook is strong. Wall Street was surprise. Due to cisco’s recovery expectations, the company’s share price rose 10% over the past three months. So far this year, cisco’s share price has risen by 12%, while the standard & poor’s 500 index rose 5.1% over the same.

however, although already show signs of recovery, but cisco has yet to return to growth. In the fourth quarter, cisco’s revenue fell 0.5% year on year, net profit fell 1% year on year. Chambers said, cisco is expected to first fiscal revenue will remain unchanged, an increase of about 1%. (d)