Cisco announces restructuring, raises full-year outlook

17 Nov 2022 , 12:17 PM

Cisco Systems Inc raised its full-year revenue and earnings forecasts. The company also announced a $600 million severance pay and other restructuring payments. This affects about 5% of the workforce. It comes when companies like Amazon Inc and Facebooks parent company Meta Inc are cutting staff to deal with a possible economic downturn.

While addressing supply chain challenges, Cisco invested in cloud solutions and raised target prices to improve business and attract customers. Cisco is planning a restructuring in the second quarter of fiscal 2023. The company said it would record expenses over the next few quarters. This includes some costs associated with shrinking office space as more people work in hybrid home office models.

The shares of the company rose 5% in extended trading on November 16th.

The company expects annual revenue growth of 4.5% to 6.5% and adjusted earnings from $3.51 to $3.58. Its revenue was $13.63 billion in the first quarter, according to Refinitiv data. Excluding items, the company has earned 86 cents per share, 2% above expectation.

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