Cisco Announces Restructuring Plan That Will Impact ~5% Of Global Workforce; Co. Estimates That It Will Recognize Pre-Tax Charges To Its GAAP Financial Results Of Approximately $800M Consisting Of Severance And Other One-Time Termination Benefits And Other Costs
Portfolio Pulse from Benzinga Newsdesk
Cisco has announced a restructuring plan affecting approximately 5% of its global workforce, with an estimated pre-tax charge of $800M to its GAAP financial results. This charge includes severance, one-time termination benefits, and other costs.
February 14, 2024 | 9:19 pm
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Cisco's restructuring plan involves a workforce reduction of about 5% and an estimated $800M in pre-tax charges, affecting its financial results.
The announcement of a restructuring plan, especially one involving significant workforce reduction and substantial financial charges, typically leads to short-term negative sentiment among investors. The direct financial impact of the $800M in charges and the uncertainty regarding the restructuring's long-term benefits may lead to a decrease in stock price in the short term.
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