Cisco To Cut 4,000 Jobs

August 15, 2013

NEW YORK – Cisco’s earnings and revenue grew in the latest quarter as demand for its computer networking equipment increased. But CEO John Chambers called the global economy “challenging and inconsistent” and the company said it is cutting about 4,000 jobs, or about 5 per cent of its work force. Cisco’s revenue guidance for the current quarter was weaker than Wall Street expected, and shares fell sharply in extended trading.

The company’s stock fell $2.51, or 9.5 per cent, to $23.87 in extended trading after the results were released. The stock closed up 6 cents at $26.38 in the day’s regular trading session.  Cisco Systems Inc. earned $2.27 billion, or 42 cents per share, in the three months that ended on July 27. That’s up from $1.92 billion, or 36 cents per share, a year earlier.