Cisco's revenue declines for third straight quarter, it decides to lay off 7% of its employees, while its stock price rises by more than 5%

Cisco has announced its financial results for the fourth quarter (May to July) and fiscal year 2024. At the same time, Cisco also announced that it will lay off 7% of its employees.

Cisco Reports Fourth Quarter And Fiscal Year 2024 Earnings

https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2024/m08/cisco-reports-fourth-quarter-and-fiscal-year-2024-earnings.html

Cisco (CSCO) earnings report Q4 2024
https://www.cnbc.com/2024/08/14/cisco-csco-earnings-report-q4-2024.html

Cisco's fourth quarter 2024 revenue was $13.6 billion (approximately 2 trillion yen), down 10% from the same period last year. This marks the third consecutive quarter of declines in Cisco's revenue. In addition, revenue for the entire fiscal year 2024 (August 2023 to July 2024) was $53.8 billion (approximately 7.93 trillion yen), down 8% from the previous year.

Although Cisco's revenues are declining, they exceeded analysts' prior forecasts, causing its stock price to rise by more than 5% in after-hours trading. In addition, although revenues declined, product orders increased 14% compared to fiscal 2023. Cisco CEO Chuck Robbins said, 'We finished fiscal 2024 on a strong note. Demand stabilized in the fourth quarter and orders increased across our business. Customers entering the AI era need Cisco products to strengthen collaboration and protect their organizations,' highlighting the company's strength.

Cisco also announced that it would lay off 7% of its workforce at the same time as the financial results announcement. Cisco estimates that the total cost of severance and benefits to be paid upon layoffs will be up to $1 billion (about 147 billion yen).