Cisco Announces Layoffs
Company Posts Revenue Decline in Fourth Quarter
Layoffs Come After Chipmaker Intel's Job Cuts
SAN FRANCISCO, Calif. (Aug. 16, 2023) - Cisco Systems Inc. announced Wednesday that it is laying off employees, joining a growing number of tech companies cutting jobs amid economic uncertainty.
The layoffs come just two weeks after chipmaker Intel Corp. announced plans to reduce its workforce by 45%. In its fiscal fourth quarter that ended on July 27, Cisco posted revenue of $13.6 billion, down 10% year-over-year. Earnings per share (EPS) were $0.54, down 44%.
Despite the revenue decline, Cisco's deferred revenue increased by 10% to $25.6 billion. Deferred product revenue and deferred service revenue both saw increases of 10% and 9%, respectively.
In its earnings call, Cisco CEO Chuck Robbins said that the company is "taking a prudent approach to managing our costs." He added that the layoffs are "necessary to align our workforce with our strategic priorities."
Cisco did not disclose the number of employees it plans to lay off. However, the company employs approximately 83,300 people worldwide.
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