:max_bytes(150000):strip_icc()/GettyImages-1601469961-d8644d2f998345f2bf8f100d2046de3a.jpg "Cisco shares recovered after earnings announcement – and further layoffs")
Key findings
- Cisco is cutting 7% of its workforce, months after announcing a 5% cut in February.
- The company’s fourth-quarter results exceeded revenue and earnings expectations.
- Cisco’s acquisition of cybersecurity company Splunk in March for $28 billion also contributed to the results.
Cisco Systems (CSCO) is cutting about 7% of its workforce to focus on higher-growth areas such as cybersecurity and artificial intelligence (AI), the company said in a filing with the SEC along with its fourth-quarter results.
This move came after the network equipment provider announced a 5 percent cut in February, affecting around 4,250 employees.
For the fourth fiscal quarter, Cisco reported revenue of $13.6 billion, down 10% year over year, and earnings per share (EPS) of $0.54, down 44%. However, according to Visible Alpha, the declines were not as bad as analysts had predicted.
The company expects revenue of $55 billion to $56.2 billion and earnings per share of $1.93 billion to $2.05 for fiscal year 2025. Analysts had expected $55.6 billion and $2.30 per share, respectively.
Quarterly subscription revenue was $27.4 billion, including revenue from cybersecurity company Splunk, which Cisco acquired for $28 billion in March, accounting for more than half of the company’s total revenue.
Cisco shares rose more than 5% in after-hours trading on Wednesday after gaining slightly during the regular session.
