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
  • 8 Ways to Get More From Your VoIP System

    Many businesses adopt VoIP to take advantage of the cost savings without spending enough time reviewing the features and benefits made available by different solutions. If this is true for your business, there’s a good chance you could be getting more from your VoIP system in the form of even lower costs or improved employee productivity. You may even find that your current software offers features that you aren’t taking advantage of! more

  • 7 Ways the Wrong Phone System Can Haunt Your Business

    The wrong phone system could be haunting your business - and we’re talking about problems more serious than ghosts and ghouls. From increased costs to issues with scaling, we’ve identified seven important ways that a less than ideal phone system could be holding you back. You’ll be surprised at how much of a difference this can make to your bottom line too. more

  • Ditch Your Fax Servers

    An in-house fax server gives an IT department centralized management and monitoring over the entire enterprise's faxing. This can help your company track usage and better maintain records for auditing and record keeping. However, there are serious drawbacks that come with utilizing an in-house fax server solution and these range from security to cost-prohibitive pricing. 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

  • VoIP: Your New Secret Weapon for a Strong Year End

    As the end of 2017 nears, you may be feeling pressure to make sure you close the year out strong.If you’ve been sitting on the fence regarding VoIP, this may be the perfect time to switch. VoIP options had never been better or more full-featured than they are now, and it may be just the thing your business needs to see a productivity and profitability boost. more

Related Articles