Cisco To Ax 1,300 Jobs

By Josh Long Comments
Posted in News, Cisco, Financial

Employees of Cisco Systems Inc. have reason to be skittish.

The networking equipment giant plans to cut 1,300 jobs, or 2 percent, of its global workforce.

The California-based company told Bloomberg News the reduction reflects a "continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world."

The job cuts come in the wake of Cisco's decision last year to cut 6,500 jobs, or 9 percent of its workforce, as part of a plan to simplify its organization, refine operations and slash annual costs by $1 billion.

In its quarter ending April 26, Cisco's net sales rose 6.6 percent over the year-earlier period to $11.6 billion while its profit increased 19.8 percent to $2.2 billion. However, Cisco CEO John Chambers projected smaller earnings and revenues in the following quarter than Wall Street anticipated.

"We are still in an uncertain environment economically," Chambers was quoted by The Associated Press as telling analysts during a third-quarter conference call in May.

Cisco will report its fourth-quarter fiscal earnings on Aug. 15.

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