Cisco sheds jobs in tough climate

The Cisco logo is displayed at the technology company's campus in San Jose, California.

The Cisco logo is displayed at the technology company's campus in San Jose, California.

Published Jul 24, 2012

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San Jose - Cisco Systems is preparing to lay off about 1 300 workers just a few months after the world's largest maker of computer networking equipment warned that growing economic uncertainty is making it tougher to close deals.

The cuts announced on Monday represent about two percent of Cisco Systems’ payroll of 65 000 workers.

The upcoming layoffs represent the company's latest austerity measure. Last year, Cisco shed about 10 000 jobs as part of a programme aimed at saving about $1-billion annually.

Cisco says it is shedding jobs to simplify its operations and adjust to changing economic conditions around the world. The company didn't specify what parts of its operations will be trimmed.

In May, Cisco CEO John Chambers made a series of cautionary remarks that alarmed investors. - Sapa-AP

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