World’s largest networking gear firm Cisco on Wednesday said it would cut 1100 more jobs across geographies to reduce cost and transform itself more in to a software company.
The company said this while announcing its Q3 results for fiscal 2017.
Earlier, in the beginining of the fiscal year, in August the company had announced to cut 5,500 jobs across geographies. So, in total the company is slashing a total of 6,600 jobs and this will take effect by end of Q1 of 2018 fiscal year.
While slashing the jobs, Cisco said it believes the company will realize a total of $800 to $900 million in pretax charges.
“During the first nine months of fiscal 2017, we have recognized pretax charges of $614 million to our GAAP financial results in relation to this restructuring plan. We expect to recognize approximately $150 million to $200 million of pretax charges under this plan in the fourth quarter of fiscal 2017,” Cisco said.
In terms of the company’s earnings for the third quarter, Cisco posted a total revenue of $11.9 billion with revenues from its product unit remaining flat and that of services going down by 2%.
Geography wise, revenue from APJC that includes India, has dipped by 2% whereas Revenues from americas and EMEA remained flat, the company added.
Segment wise, except security and wireless, all other business units have shown a negative growth and Switching revenue increased marginally by 2%. Revenues from security and wireless, however, grew by 13% and 9% respectively.
Company’s revenues from NGN Routing, Collaboration, Data Center, and Service Provider Video revenue decreased by 2%, 4%, 5%, and 30%, respectively.
The net income of the company grew to $2.5 billion at the end of Q3 ended 29 April from $2.35 billion for the same period a year ago.
However, the company said its happy with its performance.
“I am pleased with the progress we are making on the multi-year transformation of our business,” said Chuck Robbins, CEO, Cisco. “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.”