Cisco Systems announced yesterday that it will cut 6 thousand jobs, equal to 8% of the workforce, to start the new fiscal year in the name of cost reduction. A precise timing has not been indicated with which the redundancies will be made.
The group's CEO, John Chambers, provided the details of the "limited restructuring" by specifying that the Californian giant specializing in network systems will suffer charges of 700 million dollars, of which up to 300 million in the first fiscal quarter, which will end at the end of next October.
In its fiscal fourth quarter, Cisco Systems reported earnings of $2,25 billion, down 1% from $2,27 billion in the same period last year. In terms of earnings per share, the result went from 42 to 43 cents, but net of extraordinary items the group reached 55 cents, better than the 53 cents expected by analysts.
In the three months ended July 26, revenues fell by 0,5%, to 12,36 billion dollars, from the previous 12,42 billion, still above forecasts (12,14 billion).
