Cisco’s Stock Rallied After It Announced Earnings — and More Layoffs
![Cisco’s Stock Rallied After It Announced Earnings — and More Layoffs Cisco’s Stock Rallied After It Announced Earnings — and More Layoffs](https://i1.wp.com/www.investopedia.com/thmb/yq0S0xCOvNejc_9USIYWfCPUGHY=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1601469961-d8644d2f998345f2bf8f100d2046de3a.jpg?w=780&resize=780,470&ssl=1)
Key Takeaways
- Cisco is cutting 7% of its workforce, months after revealing a 5% cut in February.
- The company’s fiscal fourth-quarter results beat revenue and earnings expectations.
- The results were helped by Cisco’s $28 billion acquisition of cybersecurity firm Splunk in March.
Cisco Systems (CSCO) is cutting about 7% of its workforce as it pivots to higher-growth areas like cybersecurity and artificial intelligence (AI), the company announced in an SEC filing alongside its fiscal fourth-quarter results.
The move comes after the networking-equipment provider revealed a 5% cut in February that affected roughly 4,250 employees.
In its fiscal fourth quarter, Cisco posted revenue of $13.6 billion, down 10% year-over-year, and earnings per share (EPS) of $0.54, down 44%. The dips weren’t as bad as analysts had projected, though, per Visible Alpha.
The company projects fiscal 2025 revenue of $55 billion to $56.2 billion and EPS of $1.93 to $2.05. Analysts were looking for $55.6 billion and $2.30 per share, respectively.
Quarterly subscription revenue was $27.4 billion, including revenue from cybersecurity firm Splunk, which Cisco acquired for $28 billion in March. That amounted to more than half of the company’s total sales.
Shares of Cisco rose more than 5% in after-hours trading Wednesday after inching higher during the regular session.
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