Cisco announced layoffs of 7% workforce globally and said this is not a sign of weakness but this is about investments and efficiency by Cisco CEO Chuck Robbins.
Cisco Systems announced job cuts of at least 5,500 workers(7%) out of 80,900. The CEO said in the interview that layoffs were done out of strength, not weakness. They will shift millions of dollars in web skill space to fulfill the demands of the customer. And after the Q4 results the estimated revenue and earnings per share were beaten and the stock showed massive upward momentum.
The company will be going to focus mainly on AI, Software Development, Nvidia Solutions, and Cybersecurity by restructuring the cost structure. And also said that customers are demanding AI. They are using Mistral, Open AI, Cohere, and Scale AI to enhance customer service and also have investments and partnerships in it.
Cisco Earnings Release Beats the Estimates
Cisco’s Earning Per Share was estimated at 0.85 but reported at 0.87 and Revenue was estimated at 13.54B but reported at 13.64B.
Highlights of Q4 2024:
- Revenue: Total revenue was $13.6 billion, down 10%, with product revenue down 15% and services revenue up 6%. Splunk contributed approximately $960 million of total revenue for the fourth quarter of fiscal 2024.
- Gross Margin: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.4%, 63.0%, and 67.8%, respectively, as compared with 64.1%, 63.6%, and 65.7%, in the fourth quarter of fiscal 2023.
- Operating Expenses: On a GAAP basis, operating expenses were $6.2 billion, up 12%, and were 45.2% of revenue. Non-GAAP operating expenses were $4.8 billion, up 4%, and were 35.4% of revenue.
- Operating Income: GAAP operating income was $2.6 billion, down 38%, with a GAAP operating margin of 19.2%. Non-GAAP operating income was $4.4 billion, down 17%, with a non-GAAP operating margin of 32.5%.
- Provision for Income Taxes: The GAAP tax provision rate was 9.8%. The non-GAAP tax provision rate was 16.6%
- Net Income and EPS: On a GAAP basis, net income was $2.2 billion, a decrease of 45%, and EPS was $0.54, a decrease of 44%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 25%, and EPS was $0.87, a decrease of 24%.
- Cash Flow from Operating Activities: $3.7 billion for the fourth quarter of fiscal 2024, a decrease of 37% compared with $6.0 billion for the fourth quarter of fiscal 2023.
How Many Employees Does Cisco Have?
75000 Employees Cisco has after the 7% of global workforce cut off. Now the current Cisco employee count is 75000.
Jeetu Patel Cisco
Jeetu Patel is Cisco’s Executive Vice President and Chief Product Officer. He combines a bold vision, steeped in product design and development expertise, operational rigor, and innate market understanding to create high-growth businesses. He is relentlessly focused on building world-class products that solve Cisco customers’ biggest problems – bringing the power of the Cisco portfolio together to connect and protect every aspect of their organization in the era of AI.
Previously he was Cisco’s Executive Vice President and General Manager of Security and Collaboration where he led the strategy and development for these businesses and held P&L responsibility for the multibillion-dollar portfolio. In this role, Jeetu led with his creative vision and intense focus on innovation and swift execution. Together with his team, he transformed and positioned the Cisco Security and Collaboration portfolios for success and growth. In both areas, he reinvigorated organic innovation, championed key inorganic investments, and drove simplification across these portfolios with a fanatical focus on design and user experience.
Watch: Cisco CEO’s interview about company focus and reason for layoffs
