Cisco Systems said Wednesday that it is laying off 1,100 more workers, deepening job losses at the internet gear maker battling declining revenue.
The new round of layoffs comes on top of the 5,500 jobs Cisco announced it was cutting in August. That amounted to about 7 percent of its workforce at the time.
However, Cisco’s top exec put a positive spin on the results as the firm continues to make acquisitions.
“I am pleased with the progress we are making on the multi-year transformation of our business,” said Chuck Robbins, Cisco’s CEO. “The Network is becoming even more critical to business success as our customers add billions of new connections to their enterprises. We are laser focused on delivering unparalleled value through highly secure, software-defined, automated and intelligent infrastructure.”
CFO Kelly Kramer was optimistic as well.
“We executed well in Q3, delivering $11.9 billion in total revenue, while driving solid profitability and cash generation as we deliver on our strategic priorities,” Kramer said in a statement. “We will continue to invest in growth areas as we move the business toward more software and recurring revenue and return value to shareholders.”
The tech giant operates one of its largest corporate campuses in RTP with several thousand employees and contractors.
As part of Cisco’s ongoing transition, the company made three acquisitions this past Month and closed on another.
Recent Acquisitions by Cisco
- In the third quarter of fiscal 2017, Cisco completed its acquisition of AppDynamics, Inc. The AppDynamics acquisition provides cloud application and business monitoring platforms that are designed to enable companies to improve application and business performance.
- On May 1, 2017, Cisco announced its intent to acquire Viptela, Inc., a privately held software-defined wide area network company. The acquisition is expected to close in the second half of calendar 2017.
- On May 4, 2017, Cisco announced its intent to acquire the Advanced Analytics team and associated advanced analytics intellectual property developed by Saggezza, a privately held technology services company. The acquisition is expected to close in the fourth quarter of fiscal 2017.
- On May 11, 2017, Cisco announced its intent to acquire MindMeld, Inc., a privately held artificial intelligence (AI) company. The acquisition is expected to close in the fourth quarter of fiscal 2017.
Cisco sells routers, switches, software and services business and has seen its business hurt as more of its corporate customers rely on remote data centers for their computing needs instead of online networks maintained on their own premises.
The company based in San Jose, California, on Wednesday reported revenue of $11.94 billion for its fiscal third quarter that ended in April. That was down from $12 billion a year earlier. It said it expects its revenue to decline 4 to 6 percent in the quarter ending in July compared to the same 2016 period.
Its stock was down $2.53, or 7.5 percent, to $31.29 in extended trading.
Cisco (Nasdaq: CSCO) reported a profit of 50 cents per share for its fiscal third quarter. Earnings, adjusted for one-time gains and costs, came to 60 cents per share and topped Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 58 cents per share.
For the current quarter, Cisco expects its per-share earnings to range from 60 cents to 62 cents.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CSCO at https://www.zacks.com/ap/CSCO