Total Pageviews

Thursday, August 15, 2013

Cisco to Cut 4000 Jobs despite Profitable 4th Quarter

With the objective of cutting costs, network equipment manufacturer Cisco Systems is shedding 5 percent of its workforce. The Silicon Valley giant stated that as a result of this decision as many as 4,000 jobs would be cut. This exercise will however enable the company to refocus on growth areas even as it faces uncertain demand for its networking equipment. "The environment in terms of our business is improving slightly but nowhere near the pace that we want," said Chief Executive John Chambers. 18 percent jump in profits The announcement followed the fourth fiscal quarter results. Cisco, the world's biggest network equipment maker, reported a jump of 18 percent in profits in the said quarter. While the business in terms of orders grew 5 percent in Americas in the fourth quarter, it slumped by 3 percent in Asia. The Chinese business also registered a fall of 6 percent. "It's just not growing at the speed we want. We have to very quickly reallocate the resources," clarified Chambers.

No comments:

Post a Comment