Third workforce reduction in about as many years for tech giant
(Reuters) — Network equipment maker Cisco Systems Inc said it would take restructuring charges of US$700 million in cash in the year ending July 2015 related to its plan to cut 6,000 jobs.
Cisco shares were down 1.5 per cent at US$24.82 in premarket trading on the Nasdaq.
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. The company has failed to sustain growth in its high-end switches and routers business.
Cisco will recognize US$250 million to US$350 million of the charges in the first quarter, the company said in a regulatory filing.
Chief Executive John Chambers on Wednesday blamed uncertainty in global demand for the job cuts.
Cisco is also battling sluggish sales and increased competition in emerging markets. The company's rivals include Juniper Networks Inc and China's Huawei Technologies Co Ltd.
The company also reported flat profit for the fourth quarter and forecast tepid first-quarter profit and revenue.