Cisco cuts 4,000 jobs despite 18% profit growth

veritas_libertas

With mobile technology becoming ubiquitous in recent years, the market leader in networking equipment saw its sales soar in double-digit percentages for much of the last decade. But the market for its products -- switches, routers, WiFi access points, modems and more -- has mostly matured and growth has slowed in recent months.


Sales of its vast array of products are closely monitored by technology analysts as the demand condition for "back-end" equipment can provide clues to the industry's broader financial outlook.


Demand from Asia was particularly weak, with product orders down 3%. Orders from customers in the Americas region grew 5%. Its product orders overall rose 4%.

Cisco cuts 4,000 jobs despite 18% profit growth

vanquish23

My co-worker just left my company to work with Cisco full time in the Service Provider area. Wonder if he made it.

tpatt100

I know it looks bad to lay off when your profits increase but the article goes over how Cisco's near future outlook isn't projected to be that great. So when your projected outlook by analysts predict stagnation and or decline in revenues your company stock takes a hit. So to make shareholders happy and boost confidence companies lay off employees to reduce operating costs which sucks.

Zartanasaurus

The devil is in the details. :shrug: