Cisco cuts FY guidance amid restructuring plan to cut 5% of global workforce

Investing.com -- Cisco Systems (NASDAQ: CSCO) reduced its full-year guidance and detailed plans to cut its global workforce as part of a broader restructuring push, sending shares lower in premarket U.S. trading on Thursday.

The network equipment maker said it expects to post full-year adjusted earnings per share of $3.68 to $3.74 on revenue between $51.5B to $52.5B, compared with a prior estimate for adjusted EPS of $3.87 to $3.93 and revenue of $53.8 billion to $55.0B.

In a call with analysts, Chief Executive Charles Robbins flagged that the business expects to see "weak demand with our telco and cable service provider customers." Analysts at Jefferies also noted that the company is continuing to deal with the fallout from a supply chain crunch that has led to an excess in customer inventory.

Cisco added that it would slash headcount by about 5%. It said the move will result in an $800 million charge from severance and other one-time termination benefits and other costs. The bulk of these expenses are expected recognized in the first half of its 2025 fiscal year.

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