*Taken from Barron’s.
Cisco Systems (CSCO), following a better-than-expected fiscal Q3 report but a disappointing Q4 outlook, this afternoon told analysts it will make changes in its business to “align our people and investments” as the company tries to move out of a period of “weakness” in parts of its business, including switching products and its public-sector business.
Chief operating officer Gary Moore said the company would seek to “move with speed and agility in the highest impact areas.”
CEO John Chambers told analysts the company must have “no excuses” as it faces competitive pressure and pricing challenges, and that, “We must adjust quickly.”
Cisco plans to streamline its construction of some products and adjust its use of sales channels to improve gross profit margin, and will also lay off workers later this summer in order to shave $1 billion from costs.