On Wednesday, Cisco Systems reported its mixed third-quarter financial data, with its stock price increasing after the earnings release.
Its stock price rose by 0.15% to $45.44 apiece, and it is expected to jump by 5.61% to $47.99 per share in the after-hours session.
The company’s earnings per share increased to $0.87, beating the experts’ $0.85 forecast. However, it is lower than the previous figure of $0.88.
Moreover, Cisco’s revenue hit $13.60 billion, beating the $13.53 billion estimates and the $12.70 billion from the last quarter.
Cisco’s networking revenue plummeted by 28.00% to $6.80 billion in the latest quarter. Meanwhile, its security revenue went up 81.00% to $1.80 billion, with its collaborative profits steadying at $1.00 billion, with Splunk contributing $960.00 million.
The network corporation announced that it will lay off 7.00% of its workforce. It mentioned in a filing that its effort to implement a restructuring plan would result in $1.00 billion in pretax charges.
Also, the fund will allow the firm to invest in key growth opportunities for more efficiency in its business. In addition, they said that $700.00 million to $800.00 million of the charges will be acknowledged in the current quarter. The rest will be spread over the course of fiscal 2025.
Layoffs Reported by Cisco for Cybersecurity Growth
Cisco Systems announced in an SEC filing that it is cutting around 7.00% of its employees, marking its second major layoff. This restructuring plan pivots to higher-growth areas like cybersecurity and artificial intelligence.
The networking equipment provider slashed its staff after it revealed a 5.00% cut in February, equating to 4,250 affected employees. The decision came as it struggled with declining demand.
On the other hand, the tech industry witnessed a wave of job cuts in 2024, with over 126,000 workers laid off from 393 companies. For instance, Intel recently announced that it laid off 15.00% of its employees to improve its manufacturing operations.
