Cisco set to cut 10,000 jobs

Network equipment maker Cisco is reported to be ready to cut up to 10,000 jobs – around 14 per cent of its entire workforce – as its aims to revitalise flagging growth.

Around 7,000 of the jobs could go by the end of August, while a further 3,000 positions will be shed through the offer of early retirement, reported Bloomberg.

Cisco – which has dominated the market for enterprise network equipment – has been feeling the strain of competition from the likes of HP, Juniper and Avaya/Nortel.

Further deals about the layoffs are expected by the beginning of August.

In May 2011, analysts reported that Cisco had been forced to make concessions on pricing, in the face of cut-throat competition.

At that time, chief executive John Chambers said he wanted the firm to reduce annual expenses by $1bn (£630m), raising the possibility of layoffs. Nevertheless, if reports prove accurate, a 14 per cent reduction would represent a significant trimming of the company’s wage bill.

Cisco hadn’t returned a call requesting comment at the time of writing.