SAN JOSE, Calif. (AP) - Cisco Systems is
preparing to lay off about 1,300 workers just a few months after the
world's largest maker of computer networking equipment warned that
growing economic uncertainty is making it tougher to close sales with
The cuts announced Monday represent about 2 percent of Cisco System Inc.'s payroll of 65,000 workers.
The upcoming layoffs
represent the company's latest austerity measure. Last year, Cisco shed
about 10,000 jobs as part of a program aimed at saving about $1 billion
Cisco says it is shedding
jobs to simplify its operations and adjust to changing economic
conditions around the world. The company, which is based in San Jose,
Calif., didn't specify what parts of its operations will be trimmed.
"We routinely review our
business to determine where we need to align investment based on growth
opportunities," the company said in a statement. "Additionally, we
continue to evaluate our organizational structure as part of our plan to
drive simplicity, speed of decisions and agility across Cisco."
The belt-tightening comes
after Cisco offered revenue guidance for its current quarter that was
well below Wall Street expectations. Cisco cautioned its revenue for the
period that ends this month is like to increase by as little as 2
percent from the same time last year. At the time that guidance was
issued in early May, analysts had been anticipating a revenue increase
of 7 percent.
Cisco CEO John Chambers
said the company might have to adjust to rapidly shifting economic
conditions beyond its control. In particular, he said the buyers of
Cisco's networking gear were becoming more reluctant to make big
purchases because of shaky economic conditions in Europe and other parts
of the world, including India.
"We will muddle through this with a little bit of bumps on the road," Chambers told industry analysts back in May.
Cisco's shares shed 29 cents, or nearly 2 percent, to close Monday at $16.07, then dipped another 20 cents in extended trading.
The company is scheduled to release its results for the current quarter on Aug. 15.
Evangelist Franklin Graham prayed on a sidewalk outside the Pentagon Thursday after his invitation to a prayer service inside was withdrawn because of comments that insulted people of other religions. More>>
Sunday, May 12 2013 10:54 PM EDT2013-05-13 02:54:09 GMT
After 37 years with ABC News, Barbara Walters is announcing on "The View" Monday that next summer, she will retire from TV journalism.More >>
For decades, Barbara Walters has inspired millions with her groundbreaking interviews—but after 37 years with ABC News, the newscaster is announcing on "The View" Monday that next summer, she will retire from TV journalism.More >>
Tweets from Latino activists, writers and artists are being credited for pushing Disney into withdrawing a "Dia de los Muertos" trademark request.More >>
When Lalo Alcaraz learned this week that Disney was seeking to trademark "Dia de los Muertos," the name of the traditional "Day of the Dead" celebrated by millions in Mexico and the U.S., the cartoonist had an idea.More >>
Tom Crawford is a member of the Meteorological Society. He has been awarded the Seal of Approval from the American Meteorological Society and has been recognized as SC's Best Weathercaster by the AP.More >>
Tom Crawford is a member of the Meteorological Society. Tom has been awarded the Seal of Approval from the American Meteorological Society and has been recognized as South Carolina's Best Weathercaster by the Associated Press.More >>