Cisco to cut 6,000 jobs as full-year revenue up 3pc to US$47.1bn

14 Aug 2014

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Despite ending its fourth quarter with US$12.4bn in revenue and reaping full-year 2014 revenue of US$47.1bn, Cisco is to cut 6,000 jobs, or 8pc of its workforce, as its business contracts in developing countries.

The networking equipment maker’s fourth-quarter revenue is flat from the year ago period, and the full-year revenue reflects a 3pc increase year-over-year.

The layoffs to take place this coming year take the total job cuts to 18,000 in the last three years as Cisco aims to reposition its business in new markets in pursuit of growth, The Financial Times reported.

Nearly all the savings from the latest job cuts would be reinvested in new areas, such as Cisco’s data centre and security businesses, The Financial Times reported Cisco CEO John Chambers as having said.

Cisco’s net income in the fourth quarter also decreased, to US$2.25bn, or US$0.43 a share, from US$2.27bn, or US$0.42, a year earlier.

Full-year earnings per share totalled US$1.49.

Cisco building image via Shutterstock

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Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com