Cisco restructuring to impact 5% of its workforce

The US-based Cisco announced $600 million in severance and other charges related to a new restructuring, which could impact roughly 5 percent of its workforce, Reuters news report said.Cisco MWC 2018 Barcelona
The enterprise networking company said the restructuring plan will begin in the second quarter of fiscal year 2023.

“This is not about reducing our workforce – in fact we will have roughly the same number of employees at the end of this fiscal year as we had when we started,” Cisco CEO Chuck Robbins said.

Cisco said it would focus its resources on its enterprise networking and security businesses. Cisco said it would book the charges over the next few quarters, which included some costs related to downsizing its office space as more people work in a hybrid home-and-office model.

Cisco Systems has raised its full-year revenue and profit forecast amid easing supply chain hurdles.

Cisco said it expects an annual revenue growth of 4.5 percent to 6.5 percent, and adjusted earnings between $3.51 and $3.58. It previously forecast revenue growth of 4 percent to 6 percent for the year and earnings of $3.49 to $3.56, excluding items.

Cisco revenue

Cisco has reported revenue of $13.6 billion (+6 percent), net income of $2.7 billion in its first quarter results for the period ended October 29, 2022.

Chuck Robbins, chair and CEO of Cisco, said: “These results demonstrate the relevance of our strategy, our differentiated innovation, and our unique position to help our customers become more resilient.”

Cisco’s product revenue rose 8 percent to $10,245 million and service revenue was flat at $3,387 million. Revenue by geographic segment was: Americas up 5 percent at $7,914 million, EMEA up 11 percent at $3,675 million, and APJC was flat at $2,043 million.

Cisco has generated revenue of $6,684 million (+12 percent) from Secure, Agile Networks business, $971 million (+9 percent) from End-to-End Security business, $193 million (+7 percent) from Optimized Application Experiences, $1310 million (–5 percent) from Internet for the Future and $1086 million (–2 percent) from Collaboration business.