Cisco forecasts weak revenue; plans job cuts, early retirement for cost-saving

Cisco predicts 9% to 11% revenue drop, compared to last year’s first fiscal quarter. Analysts expected an average dip of about 7%. Adjusted profit will be 69% to 71% a share, lower than WSJ expectations of 76%. CEO Chuck Robins plans to reduce Cisco’s reliance on expensive proprietary hardware that suffered a 16% dip in sales. Expense reduction plan includes job cuts, an early retirement plan for some workers with $900M budget for severance and termination benefits.

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