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According to a recent article published on the News Observer website, networking equipment producer, Cisco Systems announced that it would cut the jobs of approximately 6,000 workers. The report indicates that although the "fourth-quarter sales and profit_" of the company exceeded the projections of financial experts, they will move forward to let go "_8 percent of its workforce, as part of a restructuring." Cisco's estimate of "_pretax charges_" to reach "_$700 million, with about $250 to $350 million recorded in the current quarter, for the restructuring_", according to the report.
The News Observer reported that the networking product giant employs approximately 4,600 people plus an additional 1,400 contract workers at their third-largest location, Research Triangle Park, near Durham, Raleigh, and Chapel Hill, North Carolina. Cisco recently announced plans for expansion at this location by "_adding 550 jobs…over the next four years_" and experienced "_several earlier rounds of layoffs_" which resulted in 10,000 jobs being eliminated over a few years to the report.
According to the report, amid announcements of restructuring, Cisco saw $12.4 billion in revenue as of July 26, 2014, which exceeds the estimates of financial analysts' data – compiled by Bloomberg – by .2 billion. Cisco still dominates the multi-million dollar networking equipment market. Still, as the report states, the company CEO John Chambers is working hard to "turn around the world's largest networking-equipment maker and prepare it for a shift in the industry toward software-driven networking_" and has recently "_rolled out software that lets customers manage the devices as a single, efficient entity."
Written by Bryon Turcotte / August 15, 2014