Euronews: Cisco Cuts More Jobs

Cisco Systems Inc. (Nasdaq: CSCO), Ofcom , Telenor Group (Nasdaq: TELN), KPN Telecom NV (NYSE: KPN) and Transmode Systems AB are some of the runners and riders in today's news race.

  • Sluggishness in Europe is one of the factors being blamed for Cisco's latest headcount reduction, which will see 2 percent of the company's staff, about 1,300 employees, lose their jobs, reports Bloomberg. In May, Cisco cited Europe's financial woes as a factor when it announced a lower-than-expected estimate for fiscal fourth-quarter revenues. A year ago the company axed 6,500 positions. (See Good Times Slow Down at Cisco and Cisco Simplifies; Cuts 6,500 Jobs.)

  • British regulator Ofcom has provided details of the 4G spectrum auction that won't now happen until early 2013, a few years later than it could and should have taken place. Optimists will be tempted to cite the idiom "better late than never," whereas Euronews would be tempted to sigh heavily, shrug and mumble "typical" into its mug of tea -- that's the real British way! (See UK's 4G Auction Set for 2013 and Ofcom Unveils 4G Auction Plans.)

  • Dutch incumbent KPN Telecom NV (NYSE: KPN) recorded a 24 percent drop in its second-quarter net profits year-on-year to €315 million (US$381 million), and a 40 percent drop in first first-half net profits to €603 million ($730 million). Its second-quarter revenues were down 3 percent to €3.19 billion ($3.87 billion). Where KPN goes from here will largely be in the hands of Carlos Slim, whose América Móvil S.A. de C.V. recently acquired 27.7 percent of the company. (See Euronews: Slim's Stealthy Expansion .)

  • Norwegian powerhouse Telenor reported second-quarter revenues up year-on-year by 4 percent to NOK 25.4 billion ($4.2 billion) and adjusted operating profit (after one-time costs) up 27 percent to almost NOK 4.49 billion ($736 million), though its net profits dropped by 54 percent to NOK 2.07 billion ($340 million). The operator has decided to scale down its operations in India, where its subsidiary Uninor has nearly 34 million users, due to ongoing uncertainties around its future in that market. (See Telenor Reports Q2 Profit of NOK2.1B, Uninor To Scale Down Operations , Telenor Writes Down India Assets and India in Shock as 122 Licenses Canceled.)

  • Swedish transport equipment vendor Transmode continued its sales growth trajectory during the second quarter, reporting revenues up 25.3 percent year-on-year to 270.3 million Swedish kronor (US$38.8 million) and net income up 57 percent to SEK34.8 million ($5 million). (See Transmode Reports Q2 Profit of SEK34.8M.)

  • Nokia Corp. (NYSE: NOK) has completed the acquisition of imaging technology specialist Scalado for an undisclosed sum. The move, which brings around 50 imaging specialists to the handsets giant, was announced in June as part of Nokia's plan to focus its development efforts on its Lumia range of smartphones. (See Nokia Cuts 10,000 Jobs, Restructures and Nokia Completes Scalado Acquisition.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

  • Be the first to post a comment regarding this story.
    Sign In