Cisco Systems Inc. is cutting 6,000 jobs — about 8 per cent of its staff — after releasing results that in its fourth quarter the company had US$12.4 billion in revenue, essentially the same as it did for the same period a year ago.
For the three-month period ending July 26 it had profit of US$2.2 billion. For the fiscal year revenue was US$47.1 billion, down US$1.5 billion compared to the 12 month period a year ago. Profit for the year just ended was US$7.9 billion, compared to $10 billion a year ago.
But Zeus Kerravala, an industry analyst with ZK Research, noted in an interview that in a conference call with financial analysts CEO John Chambers was careful to called the layoffs a “limited restructuring.” Chambers said about 2,000 of those let go will be re-hired into new positions, Kerravala noted.
Click to read more: Cisco to cut 6,000 positions
