Obama’s Historically Weak Economic Recovery to Cost a Stunning 4,000 “Good Paying” Jobs at Tech Giant Cisco
America’s staggering economy and the job killing policies of the Obama administration will cost Cisco 5% of its total workforce. The entire manufacturing sector in the U.S. over the last year created zero net new jobs, and now we face the Cisco debacle. Watch the employment dominoes begin to fall as this huge cut at Cisco ripples throughout the economy. The Wall Street Journal‘s Don Clark explains:
Cisco Systems Inc. is once again tightening its belt, this time before bad news hits the bottom line.
The Silicon Valley network-equipment giant on Wednesday said it would cut 4,000 jobs, or 5% of its workforce, despite reporting an 18% jump in profit in the fourth fiscal quarter.
John Chambers, Cisco’s chief executive, blamed the decision largely on a disappointing economic recovery that is affecting particular countries and product lines in different ways.“What we see is slow steady improvement, but not at the pace we want,” Mr. Chambers told analysts on a conference call.
While orders from customers in the Americas rose 5% in the fourth period, for example, orders from Asia declined 3%—and its business in China fell 6%.
The company projected during the conference call that revenue—which rose 6% in the fourth period—will rise just 3% to 5% in the current period.
Word of the job cuts and the first-quarter outlook accelerated a stock selloff triggered by its earnings announcement. The company’s shares fell 9.5% to $23.88 in after-hours trading.