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Friday, August 16, 2013

Cisco to cut 4,000 jobs despite strong profits

Cisco's chief executive John Chambers


The news came after it reported net income of $2.3bn (£1.5bn) in the fourth quarter, up from $1.9bn a year earlier.


Cisco's chief executive John Chambers said that "the economic recovery is slower and more inconsistent".


The cuts come as the company looks to reduce costs as it sees demand for its networking equipment remain uncertain. 


Cisco also predicted that its revenues in the current quarter would be at the lower end of analysts' forecasts. 


Its shares fell more than 9% in after-hours trading.


Mr Chambers said the job cuts were due to weaker sales in Japan, China and Europe, which had weighed on revenue growth.

"The environment in terms of our ......read full news @bbc.co.uk
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