Cisco Systems Inc. to cut 6K jobs as sales growth weakens

Nathan Andrada – Fourth Estate Cooperative Contributor

San Jose, CA, United States (4E) – Cisco Systems Inc. said it will cut jobs after posting weak sales growth, saying it will lay off around 6,000 employees.

The job cuts, which represent around 8 percent of the company’s workforce, as Cisco continues its struggles in emerging markets.

Cisco, known for its networking hardware, forecasts pretax charges of up to $700mn to cover restructuring costs. The company announced a year ago plans cut 4,000 jobs, or 5 percent of its workforce.

The announcement by the technology giant come as Cisco reported fourth-quarter financial results that surpassed estimates.

Net income for the three months ended July 26 stood at $2.25bn, or 43 cents a share, compared with a profit of $2.27bn, or 42 cents a share, in the year-ago period. Revenue fell to $12.36bn from $12.4bn.

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