Cisco Hits a Rough Patch

Cisco – an American company – has been at the top of the telecommunications industry, but has recently hit a rut with sales and revenue decreasing in some of Cisco’s international sectors. As a result, the company was forced to cut 6,000 jobs.  Unfortunately, this is not their first time cutting a large amount of workers.  About one year ago they had 4,000 workers laid off and three years ago they considered cutting more than 10,000 company employees.  For an all-around prominent company to have to cut ten to twenty thousand workers, they would really have to be in some trouble. Companies of all genres within the United States tend to expand their business and gain more customers in other countries.  Cisco has globally expanded in the past and has made sure to heavily focus on some of their international markets.  Sadly, some of these markets seem to be failing them.  Asia and Latin America are two locations highly targeted by many telecommunications companies to grow and increase business.  Ironically, these are the two areas where Cisco’s product orders have dropped drastically – specifically in China and Brazil.  Their orders have dropped 13% in Brazil and 23% in China.  The CEO of Cisco, as well as professional analysts, have both stated that they do not see the Cisco market recovering any time soon within these areas. On the other hand, Cisco’s sectors in both Europe and the United States are in no way failing.  In the U.S., Cisco product orders have been growing 5% each year and customer booking has increased 17% and then 16%.  Even in the UK, the market grew 6% and in Germany the market increased by 16% in both commercial and enterprise divisions. Though Cisco’s revenue from product orders has declined both 7% and 4% year-over-year, their data centers’ revenues have risen 30% and their security sector revenues have risen 29%.  Cisco hit a rough patch within their router and switching sales in both China and Brazil, but their other locations are currently stable and even growing. Launch 3 Telecom sells products from a wide variety of telecommunication companies worldwide, including Cisco.  Launch 3 also sees globalization to be very important for their company and those they support.  If you are interested in buying or selling telecom equipment or inquiring about maintenance and installation services, please contact Launch 3 Telecom at 877-878-9134 or email us at sales@launch3.net.
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