What Recovery? Cisco plans 6,000 layoffs in restructuring plan

Looks like the business community already knows that the near future is not a good one for the economy. Cisco is already planning to cut 8% of its workforce, 6,000 people next year. This is the first of several major announcements for the continuation of the California and national recession. Remember, we just found out that during the Obama Administration wages went DOWN 23%. That is proof that most of the jobs “created” were really part time low pay positions.

With gas taxes going up dramatically on January 1, 2015 in California, the State continues to take $6 billion a year in Prop.30slush funds, Obamacare killing full time jobs, we should expect many more such announcements. Oh, and as minimum wages go up based on politics not experience or productivity, expect more machines in fast food joints and fewer humans.

Cisco plans 6,000 layoffs in restructuring plan

Sarah Drake, San Fran Business Journal, 8/13/14

Cisco Systems Inc. will cut 6,000 jobs, or 8 percent of its workforce, as part of a restructuring plan.

The San Jose-based company didn’t specify which offices and departments will be affected by the cuts but said the restructuring will affect “several areas of our business.” The company said it will make the restructuring actions in 2015.

“These actions are focused on investing in growth, innovation and talent, while managing costs and driving efficiencies. We expect to re-invest substantially all of the cost savings from the restructuring actions in our key growth areas such as data center, software, security, cloud, and others,” CEO John Chambers said on an earnings call.

For the fourth quarter ended July 26, Cisco reported stronger earnings and revenue than analysts were expecting and a smaller-than-expected drop in sales.

The company posted a slight drop in revenue to $12.36 billion from $12.42 billion a year ago, and earnings of 55 cents per share, an increase from 52 cents a share last year. Wall Street expected earnings to increase 1 percent to 53 cents per share and forecast revenue to fall 2 percent to $12.14 billion, according to Thomson Reuters estimates.

Product sales revenue hit $9.53 billion, exceeding analysts expectations of $9.34 billion. Cisco doled out a cash dividend during the quarter of 19 cents per share and repurchased about 61 million shares of common stock.

Read through the entire earnings press release here.