Enterprise networking vendor Cisco on Thursday announced it plans to eliminate around 6,000 jobs during the current quarter to return to growth curve.
The San Jose, Calif.-based company during an analyst call said it would cut up to 6000 jobs in the coming months, as it attempts to reorganize its engineering team.
Cisco employs 74,042 resources globally.
The company’s headcount increased to 74,042 in Q4 FY 2014 from 73,834 in Q3 FY 2014. In the last quarter of FY 2013, Cisco had 75,049 employees.
Cisco recorded 0.5 percent decrease in Q4 FY 2014 revenue to $12.04 billion, while its net income fell 1 percent to $2.2 billion.
The company said its revenue in FY 2014 dropped 3 percent to $47.1 billion and net income decreased 21.3 percent to $7.9 billion.
Cisco CEO John Chambers on an earnings call said: “This will be a reallocation of resources. We will invest these resources in our growth areas, such as cloud and security.”
The company would take a charge of between $250 million and $350 million in its first quarter related to the restructuring efforts.
Cisco still bet on IoT
Cisco recently began an aggressive campaign to lead the Internet of Things (IoT) market. In March, Cisco announced that it would make an investment of $1 billion to build Intercloud network to address the Internet of Everything market.
Earlier, Cisco said Internet of Everything (IoE) could generate $4.6 trillion in value for public sector organizations over the next decade.
There is some momentum at Cisco in the IoT space. During the fourth quarter of fiscal 2014, Cisco has partnered with Hamburg, Kansas City, and Barcelona to create Internet of Things infrastructures. Cisco also signed an agreement with Denmark to develop an Internet of Things infrastructure in three cities, including Copenhagen.