Cisco slashing 6,000 jobs globally as part of restructuring effort
Job cuts announced by Cisco represent roughly eight per cent of workforce; will affect workers in operations around world
NEW YORK—Cisco Systems Inc. said it will lay off as many as 6,000 workers, or eight per cent 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.
San Jose, Calif.-based Cisco reported a one per cent decline in profit, to US$2.25 billion, as revenue dipped to US$12.36 billion from US$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 as much as US$700 million, with about US$250- to US$350 million recorded in the current quarter, for the restructuring.
Shares fell 25 cents, or one per cent, to US$24.95 in after-hours trading.
The stock has risen 12 per cent this year.