Cisco Starts New Round Of Layoffs -- WSJ
February 28 2020 - 3:02AM
Dow Jones News
By Aaron Tilley
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 28, 2020).
Cisco Systems Inc. has started a new round of job cuts as the
networking-equipment maker faces the prospect of slowing sales
growth because of global economic uncertainty.
The layoffs, Cisco told The Wall Street Journal on Thursday, are
"part of an ongoing process of aligning our investments and
resources to meet the evolving needs of our customers and
partners." The company, which has around 75,000 employees, declined
to say how many people were affected or what roles they hold.
Cisco said it would support employees who are affected.
The San Jose, Calif.-based company said this month it expects
revenue to drop between 1.5% and 3.5% in its current quarter. The
decline would come on top of a 3.5% year-over-year drop in revenue
for the company's fiscal second quarter, which ended Jan. 25.
The company said, at the time, it had begun a restructuring plan
that could lead to pretax charges of around $300 million, including
severance payments. About half that amount, Cisco said, would occur
in the current quarter.
Cisco, like other technology companies, said it was on alert for
potential impact from the coronavirus outbreak on its business.
Apple Inc. and Microsoft Corp. are among tech giants to warn that
the outbreak was affecting their outlooks.
The job cuts at Cisco come as it is changing its sales focus
from hardware such as servers, routers and other gear to software
services.
Write to Aaron Tilley at aaron.tilley@wsj.com
(END) Dow Jones Newswires
February 28, 2020 02:47 ET (07:47 GMT)
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