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Cisco axing 4,000 more jobs as international sales plummet

Cisco Systems is axing another 4,000 jobs, on the back of weak international sales.

Cisco said the vacancy cull was being made as part of a move to trim middle management and speed up decision-making and operational execution.

Only this March, Cisco announced 500 job cuts, and the latest round of chopping will take the total number of jobs disappearing at Cisco over the last two years to 12,300.

Although Cisco has not confirmed where the new cuts will take place, it says it will incur charges of around $550 million (£366 million) related to them.

The redundancies came on the back of Cisco's quarterly results, which showed the company had sales of $12.4 billion (£8.26 billion), up six per cent year-on-year, and net profits of $2.3 billion (£1.53 billion), up 18 per cent year-on-year.

In explaining the cuts, Cisco CEO John Chambers said there had been uneven economic growth around the world, which impacted on the company's international sales front. But he also focused on a bloated middle-management impacting on strategic decision making.

Chambers said, "We have too much in the middle of the organisation and we're just not moving with the speed that we need in this area."

"This is just good business management. I've learned in this business you lead with your mind, not with your heart," he added

Chambers said that some of those losing their jobs may be rehired in other areas of the Cisco group.

Last month, Cisco acquired Sourcefire, a developer of network security software and hardware, for $2.7 million (£1.8 million).