Computer Giant Cisco to Lay Off 1,300 Employees in Latest Cutback


SAN JOSE, Calif. -- Cisco Systems is preparing to lay off about 1,300 workers just a few months after the world's largest maker of computer networking equipment warned that growing economic uncertainty is making it tougher to close sales with its customers.

The cuts announced Monday represent about 2% of Cisco's (CSCO) payroll of 65,000 workers.

The upcoming layoffs represent the company's latest austerity measure. Last year, Cisco shed about 10,000 jobs as part of a program aimed at saving about $1 billion annually.

Cisco says it is shedding jobs to simplify its operations and adjust to changing economic conditions around the world. The company, which is based in San Jose, Calif., didn't specify what parts of its operations will be trimmed.

"We routinely review our business to determine where we need to align investment based on growth opportunities," the company said in a statement. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco."

The belt-tightening comes after Cisco offered revenue guidance for its current quarter that was well below Wall Street expectations. Cisco cautioned its revenue for the period that ends this month is like to increase by as little as 2% from the same time last year. At the time that guidance was issued in early May, analysts had been anticipating a revenue increase of 7%.

Cisco CEO John Chambers said the company might have to adjust to rapidly shifting economic conditions beyond its control. In particular, he said the buyers of Cisco's networking gear were becoming more reluctant to make big purchases because of shaky economic conditions in Europe and other parts of the world, including India.

"We will muddle through this with a little bit of bumps on the road," Chambers told industry analysts back in May.

Cisco's shares shed 29 cents, or nearly 2%, to close Monday at $16.07, then dipped another 20 cents in extended trading.

The company is scheduled to release its results for the current quarter on Aug. 15.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum

86 Comments

Filter by:
chris1011

Mith Robbme:

"I took thousands of good Middle Class jobs and turned them into $8 and hour no benefit ones at Sports Authority and Staples. My Economics Platform has as it's centerpiece the creation of permanent Tax Free zones in Communist China to maximize the return on my investment.

I want to destroy the EPA and the Department of Education as environmental rules slow my profits and a College Education should be the sole province of Rich Kids like me instead of being accessible to the middle class through loans and grants. What do you mean you don't have $160,000 to send your kid to college? I make that in 3 days.

Vote for me Suckas."

July 25 2012 at 3:23 PM Report abuse +2 rate up rate down Reply
Darren

Who is this democracks0 character? Every comment has Evan's name in it. Who ever it is there very obsessed with Evan.

July 24 2012 at 8:52 PM Report abuse +4 rate up rate down Reply
1 reply to Darren's comment
democracks0

Evans an obsessed Obamite. Why are you so concerned about what I post about Evan. Hmmmmmmmmm.

July 27 2012 at 10:20 AM Report abuse +1 rate up rate down Reply
democracks0

Hey Evan isn't time to let Ohmy or Teacrzy out. LOL.

July 24 2012 at 7:49 PM Report abuse -4 rate up rate down Reply
Somey

democracks0

Evan has a new screen name today ErinBliss LMMFAO!!!!!!!!!!!!!!!!!!!!!

He's voting comment down right now.

Obamas a fiasco
========================================================
That naughty, naughty, Evan

July 24 2012 at 7:45 PM Report abuse +5 rate up rate down Reply
2 replies to Somey's comment
democracks0

See I just posted that Sometroll was lurking. LMAO

July 24 2012 at 7:45 PM Report abuse -3 rate up rate down Reply
democracks0

Evans a dope

July 24 2012 at 7:46 PM Report abuse -3 rate up rate down Reply
democracks0

I know Sometroll is lurking.

July 24 2012 at 7:44 PM Report abuse -3 rate up rate down Reply
democracks0

Soon Evan will pop up with another screen name.

July 24 2012 at 7:43 PM Report abuse -3 rate up rate down Reply
Somey

imalibnow2

His policies are anti-business. We libs don't care. We want this to be a third world country.
=========================================================================
If you ask me, the GOP with their voodoo economics are doing a great job at reducing the middle class to third world level.

July 24 2012 at 7:39 PM Report abuse +3 rate up rate down Reply
1 reply to Somey's comment
democracks0

I think the fact the Obama hasn't met with his jobs council in over 6 months says it all. He's too busy partying with the 1%ers at his $40,000.00 a plate fund raisers in order to save his own job.

And it was Debbie Schultz who said this is the Obama economy.

Obamas a fiasco

SIMP!

July 24 2012 at 7:42 PM Report abuse -3 rate up rate down Reply
democracks0

Evan has a new screen name today ErinBliss LMMFAO!!!!!!!!!!!!!!!!!!!!!

He's voting comment down right now.

Obamas a fiasco

July 24 2012 at 7:29 PM Report abuse -1 rate up rate down Reply
1 reply to democracks0's comment
Somey

That naughty, naughty Evan.

July 24 2012 at 7:37 PM Report abuse +4 rate up rate down Reply
2 replies to Somey's comment
democracks0

What's up Evan?

July 24 2012 at 7:38 PM Report abuse -3 rate up rate down
democracks0

How many screen names have you used today. I counted about 6 so far maybe 7.

July 24 2012 at 7:39 PM Report abuse -3 rate up rate down
ddstan1120

Forward this to the Obama regime. Let's see what spokesboy Jay Carney and Axlerod's spin on this little bit of news will bring. More laughter and levity coming up.

July 24 2012 at 4:45 PM Report abuse rate up rate down Reply
jims3

This is just another example of the OBAMA ECONOMIC TEAM FAILURE. Time for new blood in the White House.

July 24 2012 at 4:23 PM Report abuse +3 rate up rate down Reply
1 reply to jims3's comment
ChisnaAlaska

How is a $1.1 billion dollar increase in Cisco's net sales from last year
a Obama economic team failure ?

Do you also consider the largest single
quarter ( after tax ) profits by U.S. corporations to be a failure ?
http://research.stlouisfed.org/fred2/series/CP/

July 24 2012 at 4:51 PM Report abuse -1 rate up rate down Reply