Restructuring Plan Boosts Cisco Stock – Longs Suggested on Impending 5,500 layoffs
Cisco on Wednesday reported fiscal fourth quarter revenue of $12.6 billion,with net income on a GAAP (generally accepted accounting principles) basis of $2.8 billion $0.56 per share, and non-GAAP net income of $3.2 billion or $0.63 per share.
The company announced a restructuring plan that will require a layoff of up to 5,500 employees, representing approximately 7 percent of its global workforce. Cisco decided to broaden its focus on cloud-based services instead of spreading its investment equally over “lower growth areas” of its portfolio such as traditional hardware.
Buy Stop at 30.60, Take profit at 30.96, Stop loss at 30.48