Due to the bad economic situation, Cisco cuts 4,000 jobs

On Aug. 15 Cisco announced that it will lay off 4,000 people, occupying 5% of its employees. Affected by this news, shares fell 10 percent after-hours.

Cisco today announced earnings, the fourth-quarter profits are $ 2.27 billion, increasing by 18%, revenue of $ 12.4 billion. Results meet analysts’ expectations, but not too many.

In the financial analyst conference, Cisco said it would lay off 5 percent in the global to”rebalancing” its employee base. Cisco CEO John Chambers said in the conference that the economy faced challenges, optimize the company’s personnel structure, so the company’s overall operations would be more powerful.

Industry have pointed out that cost control is still the real reason behind the Cisco layoffs. Now companies are looking for a more open or highly integrated solution, Cisco’s performance in this area is less satisfying than HP and IBM.

Large data centers have attention turned to low-cost equipment suppliers in Asia, rather than Cisco’s heavy management device.

At present, the switch is still Cisco’s core business.

Due to the bad economic situation, Cisco cuts 4,000 jobs