Cisco to cut another 6,000 jobs as forecast falls flat
By Marina Lopes
(Reuters) - Cisco Systems Inc (CSCO.O: Quote) forecast tepid current-quarter results and said it plans to cut another 6,000 jobs, as the network equipment maker works through a transition toward a new cycle of high-end switches and routers.
The latest round of layoffs is at least the third workforce reduction in about as many years for a company once synonymous with the Internet boom, but which has lately struggled to sustain growth.
The company announced in August 2013 that it would cut 4,000 jobs. And in 2011, it said it planned to reduce its workforce by more than 11,000.
Shares in the company slipped 0.95 percent to $24.96 in extended trading, from a $25.20 close on the Nasdaq.
“The market doesn’t wait for anyone. We are going to lead it, period," Chief Executive Officer John Chambers told analysts on a conference call. "The ability to do that requires some tough decisions. We will manage our costs aggressively and drive efficiencies.”
Chambers partly blamed the cuts on the uncertainty in global demand. In emerging markets, where the company faces sluggish sales and increased competition, Cisco saw continued challenges. China product orders fell 23 percent, and Brazil had 13 percent declines.
"Unfortunately, as we look out, we don’t see emerging markets growth returning for several quarters and believe it could get worse," said Chambers.
Total product orders rose 1 percent, with 2 percent growth in both the Americas and Europe, the Middle East and Africa, offset by a 7 percent decline in Asia and Pacific. Continued...