Feeds

Cisco prepares to take $700m hit to make 6,000 layoffs

Fiscal 2015 pain includes severance pay and benefits

Beginner's guide to SSL certificates

Cisco has said that it will be hit with $700m in charges in fiscal 2015 in the restructuring plan that will see the firm axe 6,000 employees.

The company said in a regulatory filing that it expects to recognise around $250m to $350m of these charges in the first quarter of the next financial year and the rest throughout the year. The charges will consist of severance pay and other termination benefits and costs of letting eight per cent of its global workforce go.

Cisco announced the latest round of layoffs as part of its financial results earlier this week.

Although the firm managed to beat its guidance for revenue decline of between one and three per cent – registering just a 0.5 per cent dip instead – chief exec John Chambers said times were tough in emerging markets, where Cisco had been hoping to see more growth. The firm said that sales fell by 23 per cent in China in the quarter and by 13 per cent in Brazil.

The network tech maker has endured round after round of cuts since the global financial crisis, averaging around one a year for the last four years.

Like many older tech firms, the company is trying to focus in new areas like cloud computing and the Internet of Things to bring in new revenue streams. Cisco has also branched out from switches and routers into servers, but faces stiff competition from existing competitors Juniper Networks and Huawei and server kings like HP and IBM. ®

Beginner's guide to SSL certificates

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
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.