Cisco becomes latest tech giant to slash jobs

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Networking giant Cisco confirmed plans to axe around seven per cent of its global workforce.

The layoffs — which amount to 5,500 jobs — mean it will join other tech giants such as Microsoft, Intel and HP who have all made sizeable layoffs in recent years.

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It came as Cisco reported adjust earnings per share rose nine per cent to 63 cents per share in the fourth quarter ended 30 June, up from 58 cents a year ago and also higher than analysts' forecasts for 60 cents.

The company's net income rose 21 per cent during this period to $2.8bn (£2.15bn), while its revenue fell two per cent year-on-year to $12.6bn.

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Chuck Robbins, chief executive of Cisco, described the macro environment as "challenging" and said that the firm had seen a "slowing" in its service provider business and the emerging markets.

Of its around 70,000 global staff, it employs around 7,000 people in the UK and Cisco last year promised to plough $1bn into the UK economy. As part of that pledge, it added 200 jobs and moved to new offices in London.