Cisco cuts 1,100 jobs as earnings disappoint

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. Last year, the company said it would eliminate around seven per cent of its workforce, or 5,800 jobs. — AFP picIn July 2012, Cisco eliminated 1,300 jobs, citing uncertainty. In July 2011, it eliminated 6,500 posts as part of a major company restructuring. Last year, the company said it would eliminate around seven per cent of its workforce, or 5,800 jobs. — AFP picNEW YORK, May 18 — Network equipment maker Cisco Systems said yesterday it was cutting 1,100 jobs after reporting weaker-than-expected financial results in the past quarter.

Following the announcement Cisco shares slumped more than five per cent in after-hours trading.

Cisco — which last year said it would eliminate around seven per cent of its workforce, or 5,800 jobs — said the plan now required further cuts, without offering details on the regions or staff concerned.

The company had some 71,959 employees at the end of .

In the fiscal third quarter that ended in April Cisco’s net profit rose seven per cent from a year ago to US$2.52 billion (RM10.91 billion), which was below most expectations.

Revenues meanwhile slipped 0.5 per cent to US$11.94 billion, slightly ahead of forecasts.

But Cisco’s outlook for the coming quarter was weaker than most analysts had expected.

California-based Cisco is one of the largest makers of internet network equipment, making hardware for a range of industries ranging from telecoms to connected devices. — AFP

Source: The Malay Mail Online






Comments are Closed