Cisco Slash 6000 Jobs
The jobs cuts which accounts for just under 8% of Cisco’s total workforce came as it announced “flat” Q4 revenues year over year, at $12.4 billion.
Meanwhile, FY 2014 revenue decreased 3% to $47.1 billion. Profits also slumped 21% to $7.9 billion compared to FY13.
Cisco CEO John Chambers said the jobs cuts were among the “tough choices” the company has to make. Uncertainty in global demand including China and fierce competition are among the challenges it now faces.
6000 staff globally are to go, which amounts to under 8% of its total workforce that currently stands at 75,049.
The savings will be used to invest in new growth areas, which Chambers cited at a investor call – security, data center, software, cloud and ‘internet of everything’ (IoE).
“We are executing well in a tough environment and delivered our best non-GAAP earnings per share quarter in our history,” Chambers insisted.
“I’m pleased with how we are transforming our company over the past several years and that journey continues.”
Future plans include a Cisco Global Internet of Everything Innovation Center in Barcelona for research and technological development related to IoE for smart cities.
Cisco also believes ‘Fast IT’ is the future – a recent company report estimates global IP traffic will increase nearly three-fold over the next five years due to more Internet users and devices, faster broadband speeds and more video streaming.
“Our strategy is sound, our financials are strong,” said Chambers.