So the rumors of layoffs at Cisco were right, but the number was pretty far off. Cisco reported its fiscal Q4 quarterly earnings yesterday, posting revenues of $12.6B and non-GAAP earnings per share of $0.63. Both numbers were slightly better than expected, although the company's stock price fell a bit in reponse in after hours trading.
But it was on the jobs front that there was bad news that turned out to be not as bad as rumored. Rather than a 20% headcount cut hitting 14,000 people, Cisco plans to reduce its workforce by a 'mere' 7% or 5,500. That won't make the impact any less severe on those directly affected of course. And as expected, the shift that's going in is toward software and services and away from hardware.
Cisco also reported seeing 'Brexit' have an effect on UK sales following the vote by the UK to leave the EU as companies paused at a moment of uncertainty. We'll have to see just how that manifests itself after a full quarter when Q3 numbers start coming out in October.
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