Cisco: disappointing objectives and job cuts

(AOF) – Cisco is expected to fall sharply on Wall Street after announcing disappointing prospects. The group will also cut 5% of its workforce. In the second quarter, ended at the end of January of the 2024 fiscal year, the network equipment specialist’s net profit fell 5% to $2.6 billion, or 65 cents per share. Adjusted earnings per share came in at 87 cents, 5 cents below consensus. For its part, Cisco’s turnover fell 6% to $12.8 billion while the market was targeting $12.7 billion.

“As it relates to the macroeconomic environment, we are seeing greater caution and closer scrutiny of transactions due to the high level of uncertainty,” CEO Chuck Robbins said on the conference call with analysts. “Feedback from our customers encourages us to be more cautious in our forecasts and expectations.”

“As part of the restructuring plan we announced, we plan to reduce our global workforce by approximately 5%, which will result in pre-tax charges estimated at approximately $800 million,” said the CFO, Scott Herren.

For the current quarter, revenue is expected between $12.1 billion and $12.3 billion and adjusted earnings per share are expected between 84 cents and 86 cents. Wall Street is targeting $13.11 billion and 92 cents, respectively.

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