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Cisco plans to axe around 6,000 staff in workforce shake up

Financials okay, headcount too large
Thu Aug 14 2014, 12:03
Cisco's John Chambers

CISCO HAS REPORTED its latest quarterly financial results, and said that it plans to trim its workforce by around eight percent.

Cisco's financial results are good, according to CEO John Chambers, and he said that the company is in the upswing of a turnaround.

Chambers said that the firm has been transforming and innovating for three years and has improved its performance in the enterprise and cloud markets. He talked of how Cisco is being transformed, and said that he expects the financial year to see increased revenues, even if that is to be a small gain. He added that the firm will "reinvent" itself in a range of areas.

"We are executing well in a tough environment and delivered our best non-GAAP earnings per share quarter in our history. I'm pleased with how we are transforming our company over the past several years and that journey continues," he said.

"We are focused on growth, innovation and talent, especially in the areas of security, data center, software, cloud and internet of everything. Our strategy is sound, our financials are strong, and our market leadership is secure. We have the team in place to deliver and are uniquely positioned to help our customers solve their biggest business problems."

The bad news was reserved for the company's earnings call, and was delivered by CFO Frank Calderoni.

Calderoni said that the firm will part with around eight percent of its workforce, or some 6,000 employees. This, he said, is part of the transformation of Cisco, and will help bring its financial results above expectations.

Headcount increased during the quarter by 200, but decreased by 1,000 over the year. The firm is realigning and reinvesting in talent, he added, with a view to technology and "key priorities" like the cloud.

The plan to cut 6,000 jobs was characterised as part of the firm's restructuring and will start in the first quarter of the company's financial year 2015. µ

 

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