Cisco Systems confirmed that it has begun to notify employees of a layoff and reorganization that will end up cutting about 4,000 jobs, or 5%, of the company’s global workforce.
Cisco CEO John Chambers warned of the coming cuts during the company’s fiscal fourth quarter earnings in mid-August, noting that the company was not satisfied with the speed at which the economy is recovering. He stated that Cisco’s long-term financial model calls for profitable revenue growth of 5% to 7%, but anticipates growth of 3% to 5% in the current quarter.
Cisco reiterated that message today.
"In the past two years we have managed the business with discipline and focus," Cisco spokeswoman Robyn Jenkins Blum said in a statement to Multichannel News. "As we communicated during Cisco's Q4 conference call on Aug. 14, in order to execute on the portfolio investment and operational efficiency opportunities we see in FY14, we are rebalancing our resources with a workforce reduction which will impact approximately 4,000 employees or 5 percent of Cisco's global workforce."
