Cisco Makes optimistic revenue forecast while announcing layoffs
TapTechNews August 15th news, according to TheBusinessTimes and Bloomberg reports, the world's largest computer network equipment manufacturer Cisco has made an optimistic forecast for the current quarter's revenue situation as orders have picked up. But at the same time, Cisco has also announced a layoff plan and claims it is part of a strategic transformation.
In a statement released on the 14th local time, in the first fiscal quarter ending in October (fiscal year 2025), sales will reach 13.7 billion to 13.9 billion US dollars (TapTechNews note: currently about 98.035 billion to 99.466 billion Chinese yuan).
This optimistic outlook indicates that Cisco has more buffer space in conducting business restructuring. Under the leadership of CEO Chuck Robbins, the 40-year-old Cisco is repositioning itself as a provider of network services and software, reducing reliance on one-time sales of hardware equipment.
It is reported that this layoff will reduce the number of Cisco's 90,400 employees by about 7%, that is, more than 6,300 jobs. The statement said that this will help the company shift the focus and save costs, although the layoff will bring short-term costs. Not only that, Cisco has also been digesting Splunk, which it acquired earlier this year.
According to the statement, the layoff will allow the company to invest in key growth opportunities and improve efficiency. As part of this plan, Cisco expects to record a pre-tax expense of up to 1 billion US dollars (currently about 7.156 billion Chinese yuan), including severance pay and other one-time termination benefits, as well as other related costs.
Chuck Robbins said, In the fourth fiscal quarter, we saw stable customer demand and orders across the business were growing. We ended fiscal year 2024 on a high note. Cisco's revenue in the fourth fiscal quarter of fiscal year 2024 was 13.64 billion US dollars (currently about 976.05 billion Chinese yuan), a decrease of 10% year-on-year, but still exceeded the 13.53 billion US dollars (currently about 968.18 billion Chinese yuan) predicted by analysts.