Thursday, 15 August 2013 02:47
NEW YORK CITY: Information technology giant Cisco announced Wednesday that it will cut 4,000 jobs, equal to five percent of its workforce.
"In order to execute on the portfolio investments and operational efficiency that we see in (fiscal 2014), we are rebalancing our resources with a workforce reduction," chief financial officer Frank Calderoni told analysts on a conference call.
Cisco executives described a weaker-than-expected economic recovery, with conditions especially disappointing in emerging markets.
The "economic recovery is slower and more inconsistent," chief executive John Chambers told analysts.
While the US market has been getting better, that improvement is offset by "softening" in emerging markets, Chambers added.
Chambers said some of the laid-off workers may be rehired elsewhere in the company.
The job cuts came as Cisco reported fourth quarter earnings of $2.3 billion on revenues of $12.4 billion, up from the year-ago level of $1.9 billion on revenues of $11.7 billion.
Per-share earnings exceeded analyst expectations by one cent at 52 cents per share.Copyright AFP (Agence France-Presse), 2013