International News 13/02
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Cisco plans to lay off thousands of employees in order to focus on high-growth businesses.
Networking company Cisco is planning to restructure its business by laying off thousands of employees to focus on high-growth areas. Sources suggest that the company, headquartered in San Jose, California, currently employs around 84,900 people. The exact number of layoffs is yet to be determined, and an announcement is expected next week during the company's earnings call on February 14. This decision follows a restructuring in November 2022 that impacted approximately 5% of Cisco's workforce and incurred $600 million in costs. The move to reduce jobs aligns with the actions of several other tech companies, such as Nokia, Ericsson, Amazon, Alphabet, and Microsoft, who have also implemented layoffs recently. Cisco has updated its revenue and profit projections for the full year.
Jeff Bezos has sold Amazon shares worth $2 billion.
Jeff Bezos, the founder of Amazon.com, sold around 12 million shares of the company for an estimated value of $2 billion. The sales took place on Wednesday and Thursday of last week, following the announcement that Amazon plans to sell its shares next year. Bezos had previously stated that he would sell up to 50 million shares of Amazon. The sales plan, which was adopted in 2023, will be completed by January 31, 2025. Bezos founded Amazon as a bookseller in 1994 and recently stepped down as CEO to become executive chairman. He currently holds the title of the second richest person in the world with a net worth of $200 billion.
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Nissan shares plummeted 12%, marking the biggest decline in two decades, after earnings fell short of expectations.
Nissan Motor's share price fell by 12% after its earnings fell short of expectations, marking the largest decline in the company's shares in over two decades. The drop was driven by quarterly profit missing targets and a downward revision of Nissan's car sales forecast, largely due to intense competition in China. The growth of Chinese domestic brands such as BYD, which provide cost-effective electric vehicles aimed at young drivers, has led to a decline in market share for foreign car manufacturers in China, the world's largest automotive market. Nissan is especially susceptible as it regards China as its largest market until 2022. The company is also grappling with difficulties in recovering from internal upheaval caused by the arrest and dismissal of former Chairman Carlos Ghosn. Compared to its rivals Toyota and Honda, Nissan is considered the most vulnerable in China due to its lower brand value. The drop in share price on Friday erased $1.8 billion of Nissan's market value, after the company reported a third-quarter operating profit of 141.6 billion yen ($9 billion).