Cisco cuts 4,000 jobs after ‘weaker’ sales

Technology firm Cisco Systems is to cut 4,000 jobs, despite reporting a net income of £1.5 billion in the fourth quarter.

Chief executive John Chambers cited a slow and inconsistent economic recovery as one of the reasons for the firm cutting 5% of its workforce.

He said that weaker sales in Europe, Japan, and China had also contributed to the decision.

Mr Chambers told the BBC: “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.”

Cisco predicts that its revenues for this quarter will be at the lower end of forecasts, between £7.85 billion and £8.05 billion.

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