Cisco, the world's largest maker of networking equipment, revealed some devastating news for its employees during its earnings call today.
The company announced that it plans on laying off 4,000 employees during the first quarter of 2014, despite reporting 6% year over year growth , on $12.42 billion in revenue keeping $2.23 billion in net income.
Bloomberg is reporting that while sales are up in the North America, things are a lot different overseas, most notably in the European and Asian markets.
Cisco is benefiting from growing use of Web video and mobile devices that strain data networks and require the purchase of more routers, switches and servers, that hasn’t been enough to make up for weaker sales outside the U.S. Slower world economic growth impacts Cisco because of its global footprint. The company gets more than half its sales from the U.S. and Canada, a quarter from Europe and a sixth from Asia.
CEO John Chambers, during the conference call, said the layoff's are a direct result over concerns that "Cisco’s growth rate may slow," next quarter.
Lets hope Cisco employees will be able to bounce back from the coming layoffs.
Cisco employees, contact the author here: examiner.sergfranc@gmail.com .
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/cisco-4-000-employees-on-the-chopping-block-next-year?cid=roadrunner