Cisco Cutting 5,500 Jobs

 

Cisco announced a restructuring that will eliminate up to 5,500 positions, representing approximately 7 percent of the company’s global workforce. The cutbacks will begin in the first quarter of fiscal 2017.

Cisco reported fourth quarter and fiscal 2016 earnings. Fourth quarter revenue was $12.6 billion, up 2%, with product revenue up 1% and service revenue up 5%. Revenue by geographic segment was: Americas up 3%, Europe Middle East and Africa up 3%, and Asia Pacific down 2%. Product revenue growth was led by Security at 16%. Collaboration, Wireless and Switching product revenue increased by 6%, 5%, and 2%, respectively. Service Provider Video, NGN Routing and Data Center product revenue decreased by 12%, 6%, and 1%, respectively.

Net income for the fourth quarter was $10.7 billion.

2016 revenues were $48.7 billion, up 3% from the previous year.

“We had another strong quarter, wrapping up a great year. I am particularly pleased with our performance in priority areas including security, data center switching, collaboration, services as well as our overall performance, with revenues up 2% in Q4 excluding the SP Video CPE business,” said Chuck Robbins, CEO of Cisco. “We continue to execute well in a challenging macro environment. Despite slowing in our Service Provider business and Emerging Markets after three consecutive quarters of growth, the balance of the business was healthy with 5% order growth. This growth and balance demonstrates the strength of our diverse portfolio. Our product deferred revenue from software and subscriptions grew 33% showing the continued momentum of our business model transformation.”