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Layoff News: For networking company Cisco, the fourth quarter i.e. May-July 2024 was better than market expectations. However, the company is going to lay off about 7 percent of its employees from around the world. Its effect was also seen on the shares and the buying of shares increased. This is the second time this year that there is going to be a large-scale layoff in Cisco. In February, 5 percent of its employees were laid off, under which 4 thousand had to lose their jobs. At the end of FY 2023 (August-July), it had 84,900 employees.
Cisco Q4 Results Highlights
Cisco got revenue of $1364 crore, which was higher than the London Stock Exchange Group (LSEG) estimate of Rs 1354 crore. Apart from this, earnings per share stood at 87 cents, which was higher than the estimate of 85 cents. Along with the results, the company also informed in the exchange filing that it is working on a restructuring plan which will cost $100 million (tax has not been deducted yet). The company says that restructuring will give it an opportunity to invest in growth areas and will also increase the capacity of the business. Of the expenditure on this, $70-80 million will be spent in this quarter and the remaining expenses will be made in the remaining months of FY 2025.
Sales declined for the third consecutive quarter
Cisco's sales have declined for the third consecutive quarter. The company's core business is networking, which includes switches and routers. This business has been declining since big companies started moving to the cloud years ago. In such a situation, the company also started focusing on software and security business. Although its revenue in the July quarter was better than market expectations, according to the company, it has declined by 10 percent on an annual basis. Talking about the full financial year, sales have declined for the first time since 2020. Now talking about the future, another quarterly decline may come and the company says that its revenue in the October quarter may fall from $ 1470 million to $ 1365-1385 million on an annual basis. LESG estimates revenue of $ 1370 million.