American network giantCiscoAnnouncing plansLayoff5%, this decision will lead toAbout 4250 jobs were cut, causing Cisco's share price to fall by 9% in the session.
According to CNBC, citing data from the website Layoffs.fyi, January this year was the busiest month for layoffs in the industry since last March. So far this year, 144 technology companies have cut nearly 35000 employees (overseas technology companies).
Cisco released its financial report for the second fiscal quarter of fiscal year 2024, and its performance plummeted: its net revenue was $12.8 billion, down 6% from $13.6 billion in the same period last year;Net profit was $2.6 billion, down 5% from $2.8 billion a year earlier.This profit is also Cisco's worst year in the last three years.
At present, Cisco's market value is 196.8 billion dollars (about 1401.1 billion yuan), only one-third of the peak.Because of the high proportion of basic business,CiscoHe has been ranked the top of Fortune magazine's list of the best employers in the world for many times.Also known as pension companies.
At present, Cisco is also promoting AI infrastructure. CFO Scott Herren claims that by 2025, the relevant business can achieve a single income of $1 billion. However, this income is still far from the company's overall business. In addition, the original main business is gradually shrinking, and the increase of new business with high probability is not as big as the data of main business.
So now84900 employeesCisco will probably take greater action to maintain the stock price or improve the company's profits in the future. Otherwise, it will be difficult to explain to the company's shareholders if it develops according to the current trend.
