- POSTED: 14 Aug 2014 06:37
- UPDATED: 14 Aug 2014 10:43
US networking giant Cisco Systems says on Wednesday (Aug 13) it plans to slash 6,000 jobs, or 8 per cent, of its global workforce in the coming year. A Singapore-based spokesperson said "it is too early" to say what the impact will be on Singapore.
NEW YORK: Networking giant Cisco Systems said on Wednesday (Aug 13) it will continue its restructuring strategy, and plans to cut 6,000 jobs, or 8 per cent, of its global workforce in 2015.
Chairman and Chief Executive John Chambers called the move a "limited restructuring" that will allow Cisco to "reinvest cost savings in key growth areas". These growth areas are in the areas of "security, data center, software, cloud and internet of everything", he said in the company's fourth quarter and fiscal year 2014 earnings report on Wednesday.
The cuts come a year after Cisco announced 4,000 reductions in response to a weaker-than-expected global economic environment. The latest move brings the total number of jobs cuts at Cisco to 17,800 since 2011.
The company has been expanding in the areas of cybersecurity and cloud computing, but its main activities of computer networks are sensitive to economic conditions. It is expected to take charges up to US$700 million (S$874 million) for the restructuring, starting in its new fiscal year that began this month.
When asked if the job cuts will impact Cisco's Singapore operations, a company spokesperson told Channel NewsAsia: "It is too early to say what the impact will be in individual countries."
Chief Financial Officer Frank Calderoni added the move to streamline comes as Cisco moves "to continue to invest in growth, innovation and talents while managing costs".
The announcement came as Cisco announced a modest dip in quarterly profits at US$2.2 billion (S$2.7 billion) in the quarter ended July 2014. Revenues were down 0.5 per cent at US$12.4 billion (S$15.4 billion) in the period.
"We are executing well in a tough environment," said Mr Chambers in the earnings statement.