15 Aug 2013

Layoffs at Cisco

10:58 am on 15 August 2013

Cisco Systems plans to lay off 4000 employees, about 5% of its workforce.

The network equipment company earlier reported net income of $US2.3 billion in the fourth quarter, up from $US1.9 billion a year earlier. Revenues were up 6% to $US12.4 billion.

Chief executive John Chambers said that "the economic recovery is slower and more inconsistent".

The company predicted that revenues in the current quarter would grow by 3% - 5%. Shares fell more than 9% in after-hours trading.

Cisco is the world's largest manufacturer of network technology equipment. The BBC reports the company is often seen as a bellwether for other technology companies.