Cisco Systems is to trim about 5 per cent of its workforce, equal to around 4,000 jobs. The news caused the company’s share price to crash 9 per cent in after-hours trading late on August 14th.
CEO John Chambers, speaking on an analysts call, said the company is seeing a slow, steady improvement in its global trade “but not at the pace we want”. Cisco had been expecting revenue growth of 5-7 per cent in this trading period, but had achieved growth of 3-5 per cent during the quarter.
Cisco is a key broadcasting supplier of networking equipment, head-end systems and set-top boxes. Cisco also owns broadcast encryption and consumer premises specialists NDS.