The boss of Cisco Systems (Nasdaq: CSCO) said the company is planning some workforce reductions.
CEO John Chambers revealed during a conference call today that he intends to reduce costs by $1-billion, as part of a comprehensive “simplification” of its operating model.
The scale of the job cuts will be determined over the summer.
However, Cisco released fiscal third quarter earnings after the market closed in which earnings exceeded expectations, while revenues matched estimates.
For the quarter, revenue climbed 5 percent to $10.9 billion (matching forecasts), while net income of $0.42 per share beat the $0.37 consensus expectations
Continue Reading Below
“This quarter played out as we expected” said Chambers. “We have acknowledged our challenges. We know what we have to do.”
Chambers added: “We have a clear game plan, and we are a company with a track record of market-shaping innovation. We thank our shareholders, employees, customers and partners as we transition to the next phase of Cisco.”
Cisco shares have dropped steadily over the past year, from a little more than $27 per share last April, to just under $18 now.
Since the tech bubble burst in March 2000, Cisco shares have plunged almost 80 percent.