Cisco to cut 6,000 jobs as profits slide

Net income fell 21.3 per cent to $7.9 billion year-on-year
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Networking giant Cisco plans to cut 6,000 jobs - around eight per cent of its work force - after it announced a dip in profits as part of its FY 2014 report.

Cisco announced the planned cuts in a conference call and did not state when it will lay off staff.

Cisco blamed the cuts on uncertainty in global demand - it is also dealing with increased competition from newer companies as it works towards a new range of high-end routers and switches.

“The market doesn’t wait for anyone," said Cisco chairman and CEO John Chambers. "We are going to lead it, period. The ability to do that requires some tough decisions. We will manage our costs aggressively and drive efficiencies.”

It's the latest job axing at the firm, having previously announced it would cut 4,000 jobs last year and 11,000 back in 2011.

The news comes as Cisco announced it generated net income of $7.9 billion in its fiscal 2014 year, for the period ending July 26th 2014. This is down 21.3 per cent from $10 billion 2013.

Full year revenues dropped three per cent from $48.6 billion to $47.1 billion.

Q4 net income and revenues remained flat at $2.2 billion and $12.4 billion respectively.

"We are executing well in a tough environment and delivered our best non-GAAP earnings per share quarter in our history. I'm pleased with how we are transforming our company over the past several years and that journey continues," added Chambers.

"We are focused on growth, innovation and talent, especially in the areas of security, data center, software, cloud and internet of everything. Our strategy is sound, our financials are strong, and our market leadership is secure. We have the team in place to deliver and are uniquely positioned to help our customers solve their biggest business problems."

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