Cisco Announces Plans To Lay Off 4,000 Workers

Tech firm's announcement comes despite a rise in revenue.

cisco ceo john chambersCisco announced today that it plans to lay off 4,000 employees starting in the first quarter of 2014.

The news comes as the company reported earnings for last quarter. It earned $2.23 billion at $0.42 per share. Revenue was $12.42 billion, up 6 percent year over year, right in line with expectations.

The stock is tanking in after-hours trading. It's currently down about 10 above.

(Pictured is Cisco CEO John Chambers.)

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tgriffo418

Loayalty is a one way street. When the employee leaves it's not a big deal. Company trained, invested in the person puuf there gone. When the employer lets an employee go it's disloyal. What is that. You get what your worth, no real value no job.

August 15 2013 at 2:04 AM Report abuse rate up rate down Reply
tgriffo418

So keep people on the payroll even if they have nothing to do. Liberalism at it's best. Dumb.

August 15 2013 at 2:01 AM Report abuse rate up rate down Reply
STEPHEN FOSTER

lets do the math here people. 2.23 billion in profits yet they must lay 4,000 workers off!!! heres an idea, how about keeping the workers and bite into the profits a little. ITS CALLED LOYALTY!!! NEXT MAYBE THE MULTIMILLION DOLLAR HEADS AT CISCO SHOULD DO A BETTER JOB AND STREGTHEN THERE PLACE IN THE MARKET PLACE!!!!!

August 15 2013 at 12:15 AM Report abuse rate up rate down Reply
Susan

I really don't care... This hasn't affected me in any way. However, the U.S. gov't needs to change its tactics and give tax incentives to companies who retain employees AND take tax incentives away from companies who layoff or fire employees. A graduated scale of tax incentives should ONLY be given to companies which have employed MORE U.S.citizens and tax INCREASES should be given to companies that layoff or fire their employees in any given year. Do this, and you will solve more of the economic woes that the U.S. working class is suffering...

August 15 2013 at 12:00 AM Report abuse rate up rate down Reply
Captain

What a coincidence...Obamacare officially starts January 1, 2014 and it's going to be excessively expensive for corporations to continue to employ full time employees. The only purpose of a corporation is to make money for it's shareholders. Period. If you can't make a profit, they you must cut expenses and the number one expense is employees...more so under Obamacare.

"Hold on! It's going to be a bumpy ride!"

August 14 2013 at 11:52 PM Report abuse +1 rate up rate down Reply
realrambo

It is kind of tiring to get all these corporation treating Employees like Diapers , use them then dump them , I have an idea why don't we all the indesirable bunch together and form our own Co , from the lady who decided not to have cosmetic surgery , to that guy with 40 years in the field . bet you we can give them a run for their money . We have the knowledge and the skill , company confidential agreement are null and voided , they fired you , you are on you own and so do they.

August 14 2013 at 11:37 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

TIME TO SELL OFF CISCO STOCKS!

August 14 2013 at 11:26 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

KARMA WILL ATTACK THE TOP 1% FOR THESE LAYOFFS, INCLUDING THE TOP OF 99% OBAMA TOO.

August 14 2013 at 11:24 PM Report abuse -1 rate up rate down Reply
cobaltmuscle

BOYCOTT OBAMASCARE!

August 14 2013 at 10:53 PM Report abuse -1 rate up rate down Reply
tippner

I am sorry it is just pure CORPORATE GREED. They reported earnings of $2.23 BILLION for the quarter and assume annual of $9 BILLION and they want to lay off 4,000 workers. It is just corporate greed. There was an article on AOL recently looking at the trend of corporate profits and salaries. What it clearly showed was corporate profits are off the charts at the highest levels and salaries are the lowest that they have ever been. Corporations are not giving raises, have reduced wages with the excuse of the economy downturn and are not hiring. It is a greed that the corporate EXECUTIVES want their BIG FAT BONUSES and will do it at all costs for them and the shareholders. There is no 5-10 year planning by corporations today. They plan for the highest profits TODAY and again at all of our expenses. I have 3 children. Where are they going to get jobs and be able to afford a house and raise a family no matter what their education level is. I paid cash for my 3 kids college education but our kids will not be able to do that. Banks are making record profits and now there is a bank on every corner and when you go in, there is nobody in there but bank staff. Interest rates are at record low on savings accounts 0.11% and they want us to save, where?? CD's are just the same. Banks have introduced so many fees you owe them at the end of the month. A number of banks took the federal bailout money and didn't even need it. Wouldn't you as the government was offering money at 00% interest and they could loan it out at 18%. Who are the jerks here? Yes, the government cut back on spending and that also hurt the economy as that did not help. But please look at corporate profits and the amount of CASH they are all hoarding. Look at the fact there are no raises and limited hiring when they have BILLIONS IN CASH. Until we stand up to the big corporations this will never get fixed and we cannot count on the government. This is my opinion and I will not respond to any responses.

August 14 2013 at 10:50 PM Report abuse rate up rate down Reply
2 replies to tippner's comment
earlarust

The more profit they make the more taxes the government collects. The more the lobbyist can lay on those in power, tribute to Caesar. I wonder if they will pay a dividend to the little guy stock holders, those that have their IRA's invested for their retirement..

August 14 2013 at 11:20 PM Report abuse -1 rate up rate down Reply
ray

I don't read any angry at Obama or Democratic Party for all the monies given THEM. What's UP???

August 14 2013 at 11:34 PM Report abuse -1 rate up rate down Reply

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