Feeds

Cisco boss apologises for slashing jobs

It hurt him more than it hurt them

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Cisco boss John Chambers has publicly apologised for the slowdown in the networking giant's business and collapse of its share price which led to massive job cuts last week.

In a highly unusual display of humility, Chambers described a decision which means between 3,000 and 5,000 full time staff and up to 3,000 temporary workers will lose their jobs as "the worst thing I have ever done in my life".

Even while others in the networking industry were announcing a collapse in demand, Chambers remained bullish about Cisco's prospects until an announcement by the networking giant last month that it had failed to meet revenue and profit forecasts for its second quarter.

A slowdown in the US economy and reorganisation amongst US service providers, a key market for Cisco's high-end routers, have hit its sales far more than it first predicted, and caused it to predict that revenue for the next two quarters will also be flat.

Chamber's was at the forefront of Cisco's spectacular rise in the 1990s which saw him hailed as a genius on Wall Street as the firm briefly became the largest company on the planet last year, exceeding the market capitalisation of Microsoft.

Speaking at an investors conference organised by Merrill Lynch in New York, Chambers said he wanted to "apologise for the market and our stock price".

Cisco's share price has dropped 75 per cent from its high water mark last year and is currently been traded at $20.25 per share, against $82 last April. This still means Cisco has a market capitalisation of $14.7 billion but Chambers and his board are mulling a number of financial techniques to increase the firm's value.

Chief among these seems to be the introduction of a share buy-back programme, a common mechanism by firms looking to bolster flagging share valuations.

On a wider scale Chambers is calling for a cut in interests rates by the US Federal Reserve in order to stimulate the economy, the overall slowdown of which he sees as the main reason for Cisco's problems in the market. ®

Related Stories

Cisco to reduce headcount
Recruitment freeze at networking giant Cisco
Cisco's Borg-like acquisition spree may be curtailed
Why you should quit your job and work for Microsoft (or Cisco)
5000 jobs to be axed at Intel as slowdown hits
Nortel slashes more jobs
Lucent to restate sales and cut 10,000 jobs

External links

Cisco's statement on the job cuts

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.