Wireless and security led Cisco revenues in Q3 2017
Networking vendor Cisco reported its quarterly financial results this week, showing revenue down for the quarter with an outlook of further declines. To help save money, the company will cut 1,100 jobs.
This latest round of cuts follows an announcement in August that the company would cut 5,500 jobs. Headcount at Cisco stood at 73,104 as in April 2016. The company has been in the process of realigning its workforce for several years, as it replaces some employees from legacy lines of business with software developers. Two years ago when the company said it would cut 6,000 jobs, headcount stood at roughly 75,000. Cisco’s total number of employees has declined by about 2,000 since that time. The new round of restructuring is just the latest with 6,000 cuts announced in 2014 following 4,000 job cuts announced a year earlier, and 11,500 cuts announced in 2011.
In Q3 of 2017, Cisco’s total revenue was $11.9 billion, which is down 1%; product revenue was flat and service revenue was down 2%. In terms of geography, American revenues were flat, as was EMEA and the Pacific region was down 2%. In terms of product lines, wireless and security were both up, as was switching revenue. Routing, collaboration, data center and service provider video revenue were all down for the quarter.
“I am pleased with the progress we are making on the multi-year transformation of our business,” said Chuck Robbins, Cisco CEO. “The network is becoming even more critical to business success as our customers add billions of new connections to their enterprises. We are laser focused on delivering unparalleled value through highly secure, software-defined, automated and intelligent infrastructure.”
