Cisco Systems aims to cut about 6 000 employees, about 7% of its total workforce. This is the second round of cuts that the tech company will make this year, after 4 000 workers lost their jobs in February.
The company yesterday reported fourth quarter and fiscal year results for the period ended 27 July 2024, with fourth quarter revenue of $13,6-billion, net income on a generally accepted accounting principles (GAAP) basis of $2,2-billion or $0.54 per share, and non-GAAP net income of $3,5-billion or $0.87 per share.
“We delivered a strong close to fiscal 2024,” says Chuck Robbins, chair and CEO of Cisco. “In our fourth quarter, we saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI.”
Cisco bought Splunk in March, for $28-billion, and Robbins says it will be further integrated into Cisco products.
“The world around us is constantly changing, and organisations are adapting to meet the demands of an increasingly complex technology landscape,” he wrote in an executive blog. “Our customers are looking to modernize their infrastructure, protect their organisations from cyber risks, and unlock the power of their data.
“With Cisco’s leadership and broad portfolio across networking, security, collaboration and observability, and the recent addition of Splunk, we are in a unique position to help customers connect and protect every aspect of their organisations in the era of AI.”