Cisco Systems (CSCO) to Cut 5% Staff, Lowers FY Guidance

(Updated - February 14, 2024 4:09 PM EST)

The company issued FY 2024 Guidance:

• • Revenue: $51.5 billion to $52.5 billion vs prior guidance of $53.8B-$55.0B, and analyst estimate of $54.33B.

• • Earnings per Share: GAAP: $2.61 to $2.73; Non-GAAP: $3.68 to $3.74

⁽¹⁾ On February 14, 2024, Cisco announced a restructuring plan in order to realign the organization and enable further investment in key priority areas. This restructuring plan will impact approximately 5 percent of Cisco's global workforce. Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $800 million consisting of severance and other one-time termination benefits and other costs. These charges are primarily cash-based. Cisco expects to take the majority of these actions in the third quarter of fiscal 2024 and recognize approximately $500 million of these charges. Cisco expects approximately $150 million of these charges to be recognized in the fourth quarter of fiscal 2024, and the remaining amount of these charges primarily through the first half of fiscal 2025.

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