Cisco to cut another 6,000 jobs as profits stagnate
- 14 August 2014
- From the section Business
Network equipment giant Cisco Systems announces plans to cut 6,000 more jobs - its fourth jobs cull in four years.
It began aggressively cutting its payroll in 2011, when it said it would shed 11,000 posts. Thousands more were cut last year.
On Wednesday, Cisco it reported net income of $2.2bn (£1.3bn) in the fourth quarter, down from $2.3bn a year ago.
Cisco's chief executive, John Chambers, said that the company was "executing well in a tough environment".
He added that the company would manage costs "aggressively".
The headcount reduction, which will affect around 8% of the workforce, was partly due to uncertainty about emerging markets, Mr Chambers said.
"Unfortunately, as we look out, we don't see emerging markets' growth returning for several quarters and believe it could get worse," said Mr Chambers.
Cisco declined to say which parts of the business the job cuts would affect.
"We are unable to release numbers by region or country at this time," the company said.
"Technology disruption has never moved more quickly, requiring all companies to adapt and accelerate through change," it added.
In 2013 the company said it planned to cut 4,000 jobs, despite reporting strong profits.
Cisco announced 1,300 job cuts in 2012, and 11,000 in 2011.
Despite thousands of workers being laid off over the years, the company has hired people and acquired companies, resulting in a net gain of employees.
In 2011, Cisco's total workforce was around 73,000, and in the second quarter of 2014 was 74,042.
The company will continue to hire people throughout the job cuts, it said.