Cisco Systems Will Reduce Its Global Workforce By More Than 8%

Cisco Systems is the last great technology to present results on Wall Street. The accounts of the company run by John Chambers show that there are improvements in its sector, despite the fact that the turnover of the manufacturer of the system fell again. To accelerate the adjustment, it now announces that it will eliminate some 6,000 more jobs, which is equivalent to more than 8% of the global workforce.

The results are year-end closing. It reduced the profit to 7.9 billion dollars (5.900 million euros) in the year, which is equivalent to a drop of 21% when compared to the year 2013. In the fourth quarter, however, the net gain stagnated in the 2,200 million dollars. On the income side, they fell 3% in the year, to 47.1 billion, and remained at 12.4 billion in the quarter.

Its main problem is the low demand for its network systems in some emerging countries such as China, Brazil, Russia, India, and Mexico. Despite this, Chambers talks about things starting to get better. The results, in fact, exceed what Wall Street expected. So far this year, its shares appreciated 20%. Like HP and IBM, now your bet is data management.

The company already announced last year the dismissal of 4,000 employees, anticipating a negative cycle in the industry. Then it affected 5% of the workforce. Now, however, it seems the worst of the bump happened. That is why the new adjustment, its managers indicate, will be “limited” and will materialize in loads of up to 350 million in the next quarter.

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