Cisco cuts 1,100 jobs as earnings disappoint

A newly installed phone made by Cisco is shown in San Diego, California, US, April 17, 2017. Photo: Reuters

NEW YORK - Network equipment maker Cisco Systems said Wednesday it was cutting 1,100 jobs after reporting weaker-than-expected financial results in the past quarter.

Following the announcement, Cisco shares slumped more than five percent in after-hours trading.

Cisco -- which last year said it would eliminate around seven percent of its workforce or 5,800 jobs -- said the plan now required further cuts, without offering details on the regions or staff concerned.

The company had some 71,959 employees at the end of January.

In the fiscal third quarter that ended in April Cisco's net profit rose seven percent from a year ago to $2.52 billion, which was below most Wall Street expectations.

Revenues meanwhile slipped 0.5 percent to $11.94 billion(R157.69 billion), slightly ahead of forecasts.

But Cisco's outlook for the coming quarter was weaker than most analysts had expected.

California-based Cisco is one of the largest makers of internet network equipment, making hardware for a range of industries ranging from telecoms to connected devices.

AFP

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