{"id":4352,"date":"2024-08-14T20:50:45","date_gmt":"2024-08-14T20:50:45","guid":{"rendered":"https:\/\/www.youngistanjunction.com\/?p=4352"},"modified":"2024-08-14T20:50:45","modified_gmt":"2024-08-14T20:50:45","slug":"cisco-announces-workforce-reduction-and-reports-mixed-financial-results","status":"publish","type":"post","link":"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/","title":{"rendered":"Cisco Announces Workforce Reduction and Reports Mixed Financial Results"},"content":{"rendered":"<p><strong>Cisco Systems Inc.<\/strong> saw its shares rise in after-hours trading on Wednesday following the announcement of a significant restructuring plan and the release of its quarterly financial results. The tech giant\u2019s decision to cut 7% of its global workforce and its better-than-expected earnings contributed to the uptick in its stock price.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">On This Page<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-676776189c2af\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-676776189c2af\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/#Key_Financial_Metrics\" title=\"Key Financial Metrics\">Key Financial Metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/#Restructuring_and_Layoffs\" title=\"Restructuring and Layoffs\">Restructuring and Layoffs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/#Financial_Performance_and_Market_Challenges\" title=\"Financial Performance and Market Challenges\">Financial Performance and Market Challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/#Segment_Performance\" title=\"Segment Performance\">Segment Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/#Stock_Market_Reaction\" title=\"Stock Market Reaction\">Stock Market Reaction<\/a><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"Key_Financial_Metrics\"><\/span>Key Financial Metrics<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li><strong>Earnings<\/strong>: Cisco reported adjusted earnings of $0.87 per share, exceeding the analyst estimate of $0.85 per share, according to LSEG.<\/li>\n<li><strong>Revenue<\/strong>: The company generated $13.64 billion in revenue, surpassing the forecast of $13.54 billion, according to LSEG.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Restructuring_and_Layoffs\"><\/span>Restructuring and Layoffs<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Cisco revealed a restructuring plan set to incur $1 billion in pre-tax charges. This plan is aimed at enhancing operational efficiency and enabling investment in growth areas. The restructuring will see $700 million to $800 million of the charges recognized in the current quarter, with the remainder spread over fiscal 2025.<\/p>\n<p>This move follows a previous round of layoffs announced in February, which involved reducing 5% of the workforce, equivalent to over 4,000 jobs. As of the end of fiscal 2023, Cisco employed 84,900 people.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Financial_Performance_and_Market_Challenges\"><\/span>Financial Performance and Market Challenges<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Cisco has faced ongoing challenges, with sales declining for the third consecutive quarter. The company&#8217;s core networking segment, which includes switches and routers, has struggled as large enterprises shift towards cloud-based solutions. To counteract this decline, Cisco has been focusing on expanding its software and security divisions to drive recurring subscription revenue.<\/p>\n<p>In the fourth quarter, Cisco\u2019s revenue dropped by 10% year-over-year, from $15.2 billion to $13.64 billion. This decline marked the first decrease in annual sales since 2020. For the upcoming first quarter, Cisco anticipates revenue between $13.65 billion and $13.85 billion, down from $14.7 billion in the same period last year. Analysts had projected revenue of $13.7 billion.<\/p>\n<p>The revenue drop has been attributed to clients setting up previously received equipment, affecting new sales. Despite these challenges, Cisco&#8217;s acquisition of Splunk, valued at $28 billion and completed in March, has bolstered its performance. The acquisition contributed $960 million to Cisco\u2019s latest quarter revenue.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Segment_Performance\"><\/span>Segment Performance<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li><strong>Networking<\/strong>: Revenue in this segment fell by 28% to $6.8 billion.<\/li>\n<li><strong>Security<\/strong>: Revenue surged by 81% to $1.8 billion.<\/li>\n<li><strong>Collaboration<\/strong>: Revenue remained steady at approximately $1 billion.<\/li>\n<\/ul>\n<p>Net income for the quarter fell by 45%, from $4 billion (or $0.97 per share) the previous year to $2.2 billion (or $0.54 per share).<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Stock_Market_Reaction\"><\/span>Stock Market Reaction<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Cisco\u2019s stock, which had dropped 10% earlier in the year, saw a 5.5% increase in after-hours trading, closing at $47.92. This rebound reflects investor optimism about Cisco\u2019s strategic adjustments and its ability to navigate the current market challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cisco Systems Inc. saw its shares rise in after-hours trading on Wednesday following the announcement of a significant restructuring plan and the release of its quarterly financial results. The tech giant\u2019s decision to cut 7% of its global workforce and its better-than-expected earnings contributed to the uptick in its stock price. Key Financial Metrics Earnings: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[87,20],"tags":[],"class_list":["post-4352","post","type-post","status-publish","format-standard","hentry","category-reports","category-technology"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cisco Announces Workforce Reduction and Reports Mixed Financial Results - YoungistanJunction.Com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.youngistanjunction.com\/cisco-announces-workforce-reduction-and-reports-mixed-financial-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cisco Announces Workforce Reduction and Reports Mixed Financial Results - YoungistanJunction.Com\" \/>\n<meta property=\"og:description\" content=\"Cisco Systems Inc. saw its shares rise in after-hours trading on Wednesday following the announcement of a significant restructuring plan and the release of its quarterly financial results. 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