GO
Loading...

Cisco CEO: No Plans to Hire in US--Unless Tax Policy Changes

Cisco will not create new jobs in the U.S. unless changes are made to the tax policy on repatriating overseas cash, CEO John Chambers said.

Cisco has about $45 billion in cash on its balance sheet and some of that money will be put to work through capital returns to shareholders and acquisitions, Chambers said on CNBC's "Closing Bell" Wednesday.

More specifically, Chambers said half of the company's cash generated through operations, which was $3.3 billion in the second quarter, will be returned to shareholders.

Cash will also be used for acquisitions to bolster growth. And "wherever we acquire is where our headcount is going to be," Chambers said.

With cash sitting overseas, Chambers said it will likely be adding jobs outside the U.S., unless U.S. tax policy changes to make repatriation easier.

As for Europe, Chambers does see some bright spots. "We are starting to see some early signs of improvement in Europe but southern Europe is going to be a challenge," Chambers said.

—By CNBC's Shannan Siemens. Follow her on Twitter @ShannanSiemens

Contact Closing Bell

  • Showtimes

    United States
    Monday - Friday 3:00P ET
    Europe
    Monday - Saturday 21:00 CET
    Asia
    Tuesday - Saturday 03:00 SIN/HK
    Australia
    Tuesday - Saturday 05:00 SYD
    New Zealand
    Tuesday - Saturday 07:00 NZ
  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is co-anchor of CNBC's "Closing Bell."