Cisco to cut 4,000 jobs despite $2bn profit

Cisco to cut 4,000 jobs despite $2bn profit

The cuts came despite an 18.2pc rise in earnings, and pushed Cisco shares 9.1pc lower to $ 23.97 in after-hours trade.

Cisco reported fiscal fourth-quarter earnings of $ 2.3bn on revenues of $ 12.4bn, up from the year-ago level of $ 1.9bn on revenues of $ 11.7bn.

Per-share earnings exceeded analyst expectations by one cent at 52 cents per share.

Cisco officials signaled that first-quarter revenue growth will be in the 3pc to 5pc range, with earnings per share expected at between 50 and 51 cents. The updated outlook was in line with analyst expectations, but slightly on the low end.

Cisco has been expanding its profile in some targeted growth areas such as cloud computing and Internet security with a run of recent acquisitions.

Wednesday’s job cuts mark the third consecutive summer the company has downsized.

In July 2012, Cisco eliminated 1,300 jobs, citing global economic uncertainty. In July 2011, it eliminated 6,500 posts as part of a major company restructuring.

(Edited by Andrew Trotman)

Finance News – Business news from the UK and world


Uncategorized

Leave a Reply

Your email address will not be published.