Cisco to cut 4,000 jobs despite profit increase
Cisco to shed a further 4,000 jobs, around five percent of its workforce
Cisco has announced that it will cut 4,000 jobs, despite a strong increase in profits in its fiscal fourth quarter.
The cuts, which amount to 5% of the company's workforce, will be made as Cisco makes renewed attempts to focus on growth areas as demand for networking equipment is uncertain.
The company posted an 18% rise in profits for the quarter, up to $2.3 billion from profit of $1.9 billion in the same quarter last year. Revenue was up 6% to $12.4 billion.
John Chambers, CEO of Cisco said: "The environment in terms of our business is improving slightly but nowhere near the pace that we want. We have to very quickly reallocate the resources."
Chambers said the cuts were as a result of slowing demand for its networking equipment, citing Japan, China and Europe as areas where demand was weaker than expected.