Cisco cuts 6,000 jobs - 8% of its workforce
It will be the company's fourth cull in four years
Cisco will cut its worldwide staff by 6,000 in the coming months as it battles against slow growth, particularly in emerging markets, where the demand for high-end switches and routers don't have such high demand.
The company hasn't revealed which roles will be affected, nor in which territories, but it says the action had to be taken because it is struggling to make profits in emerging markets including China, Brazil, Mexico, India and Russia.
John Chambers, Cisco's chief executive said: "Unfortunately, as we look out, we don't see emerging markets' growth returning for several quarters and believe it could get worse."
The company did reveal that the departments most affected would be in its data centre, software, security and cloud sectors and the cuts would add cash costs of $700 million to its balance sheet for the year ending July 2015.
This is the company's fourth round of job cuts in four years. Last year, it announced 4,000 members of staff would lose their jobs, despite net incomes increasing year on year.
Chambers said at the time: "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."
Of these recent cuts, Chambers said they aren't just about removing overheads, but will allow Cisco to recruit in areas where skills are missing. This will mean it can concentrate on flourishing areas of its business and the company also plans to continue recruiting staff throughout the consultation process.
However, the company will have to reduce its overheads as it makes the decision to move away from consumer products, instead opting to extend its business-related portfolio, concentrating on booming technologies such as cloud computing.
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