{"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’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’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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