Boston, MA 08/18/2014 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) recently reported bad news in its 4Q2014. That was no surprise because the company has been known for declining revenue and profits in the recent past as competition heats up in its major markets around the world. Even in China where the company once invested generously things have not been rewarding. In fact, China is one of the headaches that the company is dealing with as Huawei and ZTE give it a run for its dollars.
The company reported earnings of $2.25 billion in the most recent quarter, suggesting a decline from earnings of $2.27 billion in the like quarter a year earlier. As if that was not enough, revenue also took a turn for the worse, nose-diving to $12.36 billion from $12.42 billion in the same quarter a year earlier.
With revenue and profits shrinking at Cisco, investors have been losing their patience with the company even as some analysts say the company is preserving the value.
Shares of Cisco Systems, Inc. (NASDAQ:CSCO) dropped 0.45% to $24.43 on Friday. The stock is up almost 9% this year.
8% Staff reduction
With challenges hitting Cisco Systems, Inc. (NASDAQ:CSCO) left, right and center, the company announced 8% reduction in its workforce, which means about 6,000 employees will be eliminated from its system. While staff reduction is not equal to revenue increase, the company hopes that doing so would help boost its earnings.
The future in focus
In addition to the planned layoff, the company has also summoned its employees for a crucial insider meeting in Las Vegas this month from Aug 25 – 28. The talks for the meeting are expected to address the changes happening in the IT sector where Cisco is active player proving networking equipment.
The meeting will also discuss positioning employees for future industry that is full of financial challenges and evolving technology. More importantly, Cisco Systems, Inc. (NASDAQ:CSCO) will address the revenue issue, which is an area that investors have been waiting to hear how the company intends to deal with the challenges.
