Cisco Lays Off 1,300
Networking vendor reduces its workforce by two percent
During Cisco's third quarter fiscal 2012 earnings call, the world's largest networking vendor warned about conservative IT spending.
Apparently that conservative IT spending approach is having an impact on Cisco's operations and outlook as well. Late Monday, Cisco announced a workforce reduction of approximately 1,300 staff. Cisco did not specifically identify which staff or units would be the most affected.
"We routinely review our business to determine where we need to align investment based on growth opportunities," a Cisco statement sent to EnterpriseNetworkingPlanetstated. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco."
Cisco has been pruning its operations and workforce over the last several years in an effort to streamline operations. The company has already killed off its Cius mobile tabletthis year.
Cisco's statement also noted that the company is performing a focused set of limited restructurings that will collectively impact approximately two percent of Cisco's global employee population.
"These actions, subject to local legal requirements, including consultation where required, are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world," Cisco stated.
In its most recent financial results, Cisco reported total revenue of $11.6 billion, up seven percent year-over-year. Net income for the third quarter was $2.2 billion as compared to $1.8 billion in the third quarter of fiscal year 2011, an increase of 20 percent year-over-year.