Cloud Computing: Cisco tops earnings estimates, but slashes 6,000 jobs
August 14, 2014
Grazed from Fortune. Author: Tom Huddleston.
Despite stronger-than-expected quarterly earnings, the networking equipment company remains in search of growth as product sales decline. Shares of Cisco Systems are down more than 1% in after-hours trading after the networking company posted earnings for its fourth fiscal quarter that beat analysts’ estimates yet came with the sobering news that the company plans to cut 6,000 jobs, or 8% of its global workforce.
Cisco CEO John Chambers referred to the move as “a limited restructuring” and a “reallocation of resources” on the earnings call that followed the release of its results, which boil down to a better-than-expected increase in earnings and flat revenue for its fourth fiscal quarter, which ended July 26…
Chambers said the company will take a pre-tax charge between $250 million and $350 million in the first quarter of its 2015 fiscal year as a result of the restructuring, with the full-year charge expected to hit $700 million. The company said it is expecting revenue to either be flat or up as much as 1% in the first quarter of 2015, while earnings are expected to drop slightly…
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