Cisco (NASDAQ: CSCO) will cut 2% of its work force — about 1,200. The huge router company has been hurt by year’s of diversification that has left it in low margin businesses. These were knit together by long-time CEO John Chambers, who believed he could offer a line of broadband and video products that ran from the world’s most expensive routers to home WiFi and video conferencing. Chambers has been forced to reverse course.
The firm announced the decisions
are part of a continuous process of simplifying the company, as well as accessing the economic environment in certain parts of the world.
The news does not bode well for investors who hope see Cisco return period of double-digit sales growth.
Shares are at about $15.85, down from a 52-week high of over $21.
Douglas A. McIntyre