Information technology giant Cisco to slash 4000 jobs

The Australian – AFP, August 15, 2013

In this Aug. 9, 2010 photo, a pedestrian walks by a Cisco sign outside of the
office headquarters in San Jose, Calif. Cisco Systems Inc. releases financial results
 Wednesday, Aug. 11, after the market close. (AP Photo/Marcio Jose Sanchez)
Source: The Australian

INFORMATION technology giant Cisco has announced that it will cut 4,000 jobs, equal to five per cent of its workforce.

"In order to execute on the portfolio investments and operational efficiency that we see in (fiscal 2014), we are rebalancing our resources with a workforce reduction," chief financial officer Frank Calderoni told analysts on a conference call.

The cuts were announced despite Cisco's earnings and revenue growing in the latest quarter as demand for its computer networking equipment increased.

Cisco Systems Inc earned $US2.23 billion ($2.46 bn), or 42 US cents per share, in the three months that ended on July 27.

That's up from $US1.92 billion, or 36 US cents per share, a year earlier.

Adjusted earnings were 52 US cents per share in the latest quarter, squeaking past Wall Street's expectations by a penny. This figure excludes charges stemming from a patent settlement with TiVo and other one-time items.

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Revenue rose six per cent to $US12.42 billion from $US11.69 billion.

Analysts, on average, had expected revenue of $US12.41 billion, according to a poll by FactSet.

Cisco's performance is widely regarded as a bellwether for the technology industry. That's because the San Jose, California, company cuts a broad swath, selling routers, switches, software and services to corporate customers and government agencies.

"Now, more than ever, our customers and our partners want Cisco's help navigating the inconsistent global landscape successfully," chief executive John Chambers said in a statement.

The company's shares fell $US1.03, or 3.9 per cent, to $US25.34 in extended trading after the results were released. The stock closed up six US cents at $US26.38 in the day's regular trading session.

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