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
  • Your Phone System and Your Bottom Line

    Businesses have been using phones to drive increases to their bottom lines for almost a century now. Telephony, much like the rest of the business world, has seen drastic changes with the increase in technological advancement. Voice Over Internet Protocol (VoIP), has enabled companies to connect with consumers at levels that have been seen as unheard of before. And trust us when we say this, it is doing wonders for the bottom line. more

  • 2017 Phone Systems Checklist

    As you are well aware, we are living in an age of extreme technological growth. With this, an understatement might be that phone systems have changed a bit over the last decade. If you are in the market for a new phone system, it is absolutely essential for you to have knowledge of this vast sector and just what exactly you need in order to have your business succeed. more

  • VoIP vs. VoPI

    Are you searching around for an upgrade to your current phone system? If so, you've mostly likely heard of VoIP, but do you know about VoPI? Lately, there has been a lot of conversation around what the difference is between the two systems. Most of this conversation centers around security, as both of these systems, operate over the internet versus the traditional phone lines. more

  • Why You Need Mobile VoIP

    Mobile VoIP is growing at an exponential rate and can help your company reduce costs, improve communications, and drive increased employee satisfaction and loyalty. If what was just mentioned above sounds like it would be good for your business (it is), download our latest guide Why You Need Mobile VoIP to learn even more reasons why you need to make the switch today! more

  • How You Can Stop VoIP Eavesdropping

    In today’s modern technological world we face cyber threats on an almost daily basis. This rings true when switching phone systems to VoIP. While there are many benefits to making the switch, there MUST be precautions taken to ensure that your new phone system is safe and secure. more

Related Articles