Cisco swings the axe in austerity programme

Cisco is adding to the ten thousand plus jobs that went last year making further staffing reductions as part of ongoing austerity efforts

Cisco Systems is to lay off around 1,300 workers representing around 2% of its 65,000 staff, which follows last years cut of 10,000 jobs

The company did not specify which operations will be trimmed in the latest job cuts but said they are part of the company's ongoing austerity programme aimed at saving $1bn (£644m) a year and are being implemented to simplify operations and react to worldwide economic conditions

John Chambers, the firm's chief executive, said the buyers of Cisco's networking equipment were becoming more reluctant to make large purchases, because of the uncertain economic conditions in Europe and other parts of the world, including India.

Chambers told analysts in May, "We will muddle through this with a little bit of bumps on the road,"

It is also reported today that Cisco have gained unconditional EU regulatory approval on Tuesday for its $5 billion purchase of video software developer NDS to reinforce its presence in the video communications market.

This will be Cisco's biggest deal after its acquisition of Norwegian conferencing company Tandberg for $3.3 billion in 2009.

Cisco is scheduled to report results for the fourth quarter, which ends in July, on Aug. 15.

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