Cisco is Eliminating Jobs

By Neil Zawacki
Updated: September 14, 2011

Cisco Systems has predicted that it will experience an annual sales growth of 5 percent to 7 percent by 2014, a notable downturn from the 12 percent to 17 percent the company had previously forecast for itself. Cisco also predicted the per-share earnings growth will be between 7 percent to 9 percent and that operating margins will be somewhere in the “mid-20’s” percentage range during this time period.

Dave Novesal, an analyst at Gimme Credit LLC, discussed Cisco’s predictions in a research report. He stated, “Although the new projections are woefully short of prior estimates, the good news is that Cisco intends to boost operating margins. The company plans to achieve the margin expansion via headcount reductions and other cost cutting measures.”

These headcount reductions have already begun - Cisco recently eliminated 12,700 jobs as part of a cost-reduction effort to revive sales growth. The company has also shed a large number of consumer businesses and scaled back the council-based management structure that it had previously used.

Despite these changes, John Chambers, the CEO of Cisco, stated that the company intends to be “very active” in smaller-sized acquisitions. He also indicated that he will stay at Cisco for the next three years and the board of directors and management are completely “in sync” with each other.

Featured Research
  • Is Your Phone System Stealing Profits?

    Having the wrong phone system can dramatically cut into your profits. Despite this, many businesses just sign up for a plan or platform that seems ‘good enough’. If you haven’t carefully considered your options and the included features, there’s a very good chance that you are leaving money on the table in some way. more

  • Phone System Technology Showdown

    VoIP and IP telephony are often misconstrued as being the same type of phone system, but the truth is they operate on different technology and deployment methods. This guide will explain the differences between VoIP and IP, go into the pros and cons of both VoIP and IP-PBX, and give insight into which type of phone system will benefit your business the most. more

  • Why Enterprises are Making the Switch to VoIP

    Your phone system is your most important business communication system. It allows you to connect with your employees, prospects, and clients. And wouldn't it be great if there was a solution that helped drive down costs while providing a competitive advantage? more

  • Business Phone System Buyer's Guide

    Communication has been a focal point in business since inception, but the industry is changing drastically in how people connect to one another and what tools and systems they use to do so. Less than 15 years ago, 90% of people relied on landline phone systems for communication. Today, less than 60% of Americans even have a landline and 40% rely solely on their mobile phone. more

  • The IT Manager's Survival Guide

    As an IT manager, maintaining physical fax servers and infrastructure is not a high priority. However, fax capability remains a business need simply because chances are your industry is dependent on its security. What if there was a way to reduce the amount of time spent handling fax complaints and maintaining physical servers? And this way took into account security, cost savings, and freed up your IT resources. Would you be interested? more

Related Articles