Networking equipment producer Cisco Systems announced that it will cut the jobs of approximately 6,000 workers, according to a recent article published on the News Observer website. The article 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” but also experienced “several earlier rounds of layoffs” which resulted in 10,000 jobs being eliminated over a few years, according to the report.
In the midst of 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, according to the report. Cisco still dominates the multi-million dollar networking-equipment market, but 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.”