Cisco to Slash 4K Jobs Over 'Slow' Economy
CEO John Chambers also cites bloated middle ranks
By Neal Colgrass, Newser Staff
Posted Aug 14, 2013 6:56 PM CDT
Cisco Systems Inc. Chief Executive John Chambers.   (AP Photo/Gautam Singh)

(Newser) – Cisco Systems is cutting jobs again even though it saw rising revenues in the fourth fiscal quarter, the Wall Street Journal reports. The network-equipment giant said today it will slash 4,000 jobs, or 5% of workers, because economic growth isn't moving fast enough. "What we see is slow steady improvement, but not at the pace we want," said CEO John Chambers. Cisco's profits jumped 18% in the fourth quarter and US sales rose 5%, but orders from Asia fell 3% and China business dropped by 6%.

Chambers—who has trimmed Cisco's workforce before—says the company also needs to reduce its bloated bureaucratic structure and make decisions with faster, smaller teams. "We just have too much in the middle of the organization," he said. What's more, Cisco is known for spotting business trends, so today's news may send shudders through other hardware and software companies. In after-hours trading, Cisco shares fell 9.5% to $23.88.

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Showing 3 of 44 comments
Devo74
Aug 15, 2013 1:47 PM CDT
Gotta blame the high cost of living and no pay raises, high cost of fuel, food energy etc...... Another Obama failure
Bushdidit
Aug 15, 2013 10:24 AM CDT
Chalk up another win for team Obozo. Gotta love this economy.
apocalypso
Aug 15, 2013 9:32 AM CDT
So "slash" is the new word for "outsourcing". Because those jobs aren't disappearing, they're just changing location.