Cisco states it&#x27s slicing 5% of world wide workforce, amounting to about 4,000 jobs

Cisco states it&#x27s slicing 5% of world wide workforce, amounting to about 4,000 jobs


Chuck Robbins, Cisco CEO & Chairman, at the WEF in Davos, Switzerland on May well 25th, 2022.

Adam Galica | CNBC

Cisco announced plans to cut 5% of its workforce on Wednesday, a choice that will consequence in the elimination of about 4,250 careers. Shares of Cisco ended up down as considerably as 9% in prolonged investing.

It truly is the latest tech business to downsize in 2024, as the market carries on to squeeze out expenses next the market downturn that hit two a long time ago. January was the busiest month for position cuts in the field due to the fact March, as Alphabet, Amazon, Microsoft and SAP all stated they were being eradicating positions, as did eBay, Unity and Discord. So far this 12 months, 144 tech companies have laid off nearly 35,000 employees, according to the web-site Layoffs.fyi.

In addition to disclosing the occupation cuts, Cisco described sturdy fiscal next-quarter effects but gave a mild forecast. Here is how it did in comparison with the consensus from LSEG, previously acknowledged as Refinitiv:

  • Earnings for every share: 87 cents, altered, vs. 84 cents anticipated
  • Profits: $12.79 billion, vs. $12.71 billion anticipated

Cisco’s earnings declined 6% yr in excess of 12 months through the quarter, which finished on Jan. 27, according to a statement. Net cash flow fell to $2.63 billion, or 65 cents for every share, from $2.77 billion, or 67 cents per share, in the year-back quarter. The organization has but to shut its $28 billion acquisition of monitoring and security software program maker Splunk. Cisco now expects to full the deal late in the 1st calendar quarter or early in the next quarter, CEO Chuck Robbins explained on a convention get in touch with with analysts.

Income from networking goods totaled $7.08 billion, a little underneath the $7.10 billion consensus between analysts surveyed by StreetAccount.

With regard to steering for the fiscal 3rd quarter, Cisco called for 84 to 86 cents in modified earnings for each share on $12.1 billion to $12.3 billion. Analysts polled by LSEG were being looking for altered earnings of 92 cents for every share on $13.09 billion in income.

For the whole 12 months, Cisco sees $3.68 to $3.74 in modified earnings for each share and $51.5 billion to $52.5 billion in revenue. Analysts had projected $3.86 in modified earnings for every share, with $54.26 billion in profits.

The direction excludes an influence from Splunk.

Robbins flagged troubles weighing on the advice in the course of the contact.

“In phrases of the macro atmosphere, we are observing a greater degree of caution and scrutiny of bargains offered the significant level of uncertainty,” Robbins reported. “As we’re hearing this from our shoppers, it truly is foremost us to be a lot more cautious with our forecast and expectations. Second, as we discussed very last quarter and subsequently noticed in other technological know-how company success, buyers have been having time because the begin of our fiscal 2024 to deploy the elevated amounts of goods delivered to them in recent quarters, and this is having lengthier than our original anticipations.”

Need stays sluggish between telecommunications and cable assistance provider purchasers, Robbins claimed.

Cisco said it was raising its dividend by a penny to 40 cents for each share.

— CNBC’s Ari Levy contributed to this report.

You should not overlook these tales from CNBC Professional:

Observe: Cisco CEO Chuck Robbins: Every person thinks we are much further together with AI than we truly are

Cisco CEO Chuck Robbins: Everybody believes we're much further along with AI than we really are



Supply

CNBC Daily Open: Investors loosen their purse strings for Alphabet’s increased spending
World

CNBC Daily Open: Investors loosen their purse strings for Alphabet’s increased spending

An Android character is displayed in front of a building on the Google headquarters campus on July 23, 2025 in Mountain View, California. Justin Sullivan | Getty Images Investors can have a reputation of being penny pinchers. For one, they tend to push up share prices on layoff announcements because of the associated cost savings. […]

Read More
Asia-Pacific markets set to open mostly higher as trade deal developments fuel sentiment
World

Asia-Pacific markets set to open mostly higher as trade deal developments fuel sentiment

South Korea avoids technical recession as GDP expands 0.6% in second quarter South Korea avoided a technical recession as its economy expanded by 0.6% from the previous quarter, beating expectations, according to advance estimates. This was higher than the 0.5% expected by economists polled by Reuters, and a reversal from the 0.2% contraction seen in […]

Read More
South Korea avoids technical recession as GDP expands 0.6% in second quarter
World

South Korea avoids technical recession as GDP expands 0.6% in second quarter

View across the Hangang River in Seoul, South Korea. Universal History Archive | Universal Images Group | Getty Images South Korea avoided a technical recession as its economy expanded 0.6% from the previous quarter, according to advance estimates, beating expectations. This was higher than the 0.5% expected by economists polled by Reuters, and a reversal […]

Read More