Cisco has announced it is cutting 2% of its global workforce, or about 1,300 employees, in a “limited restructuring.”
In its most recent quarter, Cisco posted a profit of $2.2 billion on $11.6 billion revenues. But Cisco shares were down 1.8% at $16.07 in the regular session on Wall Street Monday, from recent highs in April above $20 on a weaker-than-expected outlook.
"We routinely review our business to determine where we need to align investment based on growth opportunities," wrote Cisco spokesperson Karen Tillman in an emailed statement. "Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions and agility across Cisco.
"As we focus on both of these efforts, we are performing a focused set of limited restructurings that will collectively impact approximately 2% of our global employee population. These actions, subject to local legal requirements, including consultation where required, are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world."
Tillman did not detail the business units or product lines impacted by the reduction. Rumors on the blogosphere indicate that Cisco's wide area application services (WAAS) sales and engineering force is one, as well as public sector operations and advanced services.
Cisco's headcount at the end of the third quarter totaled 65,223 employees.