Cisco Announces Layoffs, Reflecting Industry Downturn

Company Posts Earnings Declines, Deferred Revenue Growth

Cisco Systems Inc. (CSCO) has announced plans to lay off thousands of employees, joining a wave of tech companies reducing their workforce amid slowing demand and economic uncertainty.

WEB Cisco's layoffs come just two weeks after chipmaker Intel Corp. (INTC) announced its largest-ever workforce reduction in response to a decline in chip sales. In its fiscal fourth quarter that ended July 30, Cisco posted revenue of $13.6 billion, down 10% year-over-year, and net income of $2.16 billion, or 54 cents per share.

Deferred Revenue Growth Amidst Overall Decline

Despite the overall revenue decline, Cisco reported a 10% increase in total deferred revenue to $25.6 billion. Deferred product revenue also rose by 10%. This suggests that customers continue to sign contracts with Cisco for future deliveries, despite the current economic challenges.

WEB "Deferred Revenue -- 256 billion up 10 in total with deferred product revenue up 10. 136 billion in revenue up 7 year over year GAAP EPS 067 down 6 year over.

Revenue Details

Cisco reported a 6% decline in total revenue to $12.8 billion, with product revenue decreasing by 9% and service revenue remaining flat.

WEB Revenue -- Total revenue was 128 billion down 6 with product revenue down 9 and service revenue.

Conclusion

Cisco's layoffs and earnings declines reflect the challenges facing the technology industry as it grapples with economic headwinds and market downturns. However, the company's continued growth in deferred revenue suggests that customers remain committed to Cisco's products and services over the long term.

WEB Cisco Systems NASDAQCSCO First Quarter 2023 Results..