Cisco to cut 4,000 jobs

Written by PTI | New York | Updated: Aug 15 2013, 19:55pm hrs
BusinessCisco announced that it will cut 4,000 jobs, equal to five pct of its workforce.
Information technology giant Cisco announced that it will cut 4,000 jobs, equal to five percent 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 yesterday.

Cisco executives described a weaker-than-expected economic recovery, with conditions especially disappointing in emerging markets.

The "economic recovery is slower and more inconsistent," chief executive John Chambers told analysts.

While the US market has been getting better, that improvement is offset by "softening" in emerging markets, Chambers added.

Chambers said some of the laid-off workers may be rehired elsewhere in the company.

The job cuts came as Cisco reported fourth quarter earnings of USD 2.3 billion on revenues of USD 12.4 billion, up from the year-ago level of USD 1.9 billion on revenues of USD 11.7 billion.

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