Cisco Systems Inc forecast tepid current-quarter results and said it plans to cut another 6,000 jobs as the network equipment-maker works through a transition toward a new cycle of high-end switches and routers. The latest round of layoffs is at least the third workforce reduction in about as many years for a company once synonymous with the Internet boom, but which has lately struggled to sustain growth. The company announced in August 2013 that it would cut 4,000 jobs.
Unfortunately, as we look out, we don’t see emerging markets growth returning for several quarters and believe it could get worse.
CEO John Chambers
Total product orders rose 1 per cent, with 2 per cent growth in both the Americas and Europe, the Middle East and Africa, offset by a 7 per cent decline in Asia and Pacific. In emerging markets, where the company faces sluggish sales and increased competition, Cisco saw continued challenges. China product orders fell 23 per cent and Brazil had 13 per cent declines.
The market doesn’t wait for anyone. We are going to lead it, period. The ability to do that requires some tough decisions.