Networking hardware giant Cisco Systems is slimming down. Again. After another quarter of pallid growth, the company will cut up to 6,000 employees, or about 8 percent of its worldwide workforce in its current first fiscal 2015 quarter. The company forecast flat growth for the upcoming quarter.
CEO John Chambers said the company will continue to invest in high-growth areas including cloud, software and security by re-allocating resources there and even make new hires as needed. SeekingAlpha has transcript of the earnings call.
The company expects to take a pre-tax charge of up to $700 million to cover costs associated with this action. Overall, the company logged net income for its fourth quarter ending in July of $2.25 billion or 43 cents per share, slightly down from $2.27 billion or 42 cents per share for the year-ago quarter. Revenue was also off slightly to $12.36 billion from $12.4 billion.
Legacy IT players have taken it on the chin of late as they try to transition from selling lots of discrete hardware and software SKUs that run on customer premises to a more concentrated sale of goods to massive cloud providers.
In June, Microsoft announced its largest layoffs in history — 18,000 jobs over the course of the year, for example.