by InvestorPlace Staff | July 24, 2012 9:59 am
Sure, we recently told you about good ol’ General Electric (NYSE:GE) adding lots of jobs (and money) to the economy in recent years, but employment woes are still a huge source of angst for the U.S. The latest proof? Cisco Systems (NASDAQ:CSCO) has announced that it is preparing to lay off around 1,300 workers — about 2% of the company’s payroll, according to the Associated Press.
And, that comes on top of last year’s layoffs, when the world’s largest maker of computer networking equipment axed around 10,000 jobs in an attempt to save $1 billion annually.
The cuts are a response to changing economic conditions in Europe and other parts of the world. CEO John Chambers, who tops InvestorPlace‘s Dow Leaderboard, explained that the company’s customers have been reluctant to make big purchases because of the shaky state of the global economy.
This was evident in Cisco’s most recent earnings report as the company missed expectations and saw shares plummet as a result. Its sales outlook for the current quarter is also well below Wall Street’s predictions — a mere 2% expected growth, as opposed to the anticipated 7%.
The stock has dropped around 15% year-to-date.
For more on the the state of jobs, check out the America’s Job Challenge page.
-Alyssa Oursler, InvestorPlace Editorial Assistant
Source URL: http://investorplace.com/2012/07/cisco-to-lay-off-1300-employees/
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