Cisco layoffs hit 4,000 employees despite profits

Posted By GABRIELLE LEVY, UPI.com   |   Aug. 15, 2013 at 8:47 AM   |   Comments

| License Photo
Aug. 15 (UPI) -- Silicon Valley networking Cisco Systems said it would lay off 4,000 employees, or about 5 percent of its global workforce -- despite growth on the quarter.

"it's just not growing as fast as we need," said Cisco CEO John Chambers Wednesday, in releasing its fourth quarter financial results.

Chambers blamed sluggish growth and intense competition from other Silicon Valley companies in the decision, which brings the total of layoffs to 12,000 over two years.

Despite a report that Cisco brought int $2.8 billion on $12.4 billion in sales in the fiscal fourth quarter, and holds $50.6 billion in cash, shares fell 14 percent in trading after the announcement.

"I'm very pleased with how we are operating," Chambers said. "I'm very comfortable with our momentum. It's just not fast enough."

"We just have too much in the middle of the organization," he said. "We've got to speed time to market. Small teams move much faster."

Cisco makes networking equipment, including switches, routers, servers, security devices and videoconference equipment to government and businesses, and is looking to expand to more household, industrial and medical web-connected devices.

Follow @gabbilevy and @UPI on Twitter.
Contact the Author
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
Why the fake braces trend may be dangerous for users
Jared Leto 'stopped eating' for his 'Dallas Buyer's Club' role
Gisele Bundchen, Tom Brady drop $14M on Manhattan home
Kelly LeBrock arrested for DUI
Brandi Brandt faces drug charges in Australia
Trending News