Cisco axe set to fall

Bloomberg reports that the networking giant could shed as many as 10,000 jobs in the coming months

Rumours abound that Cisco is gearing up to cut as many as 10,000 jobs, or 14 per cent of its workforce, to boost profit growth.

According to a report from Bloomberg, which cites "people familiar with the plans", the cuts include 7,000 jobs set to be eliminated by August.

The networking giant is also providing early retirement packages to 3,000 workers who accepted buyouts, the sources claim.

The jobs cull, to which Cisco alluded in its Q3 earnings call in May, will help the vendor save $1bn (£632m) in operating costs for the coming year.

Cisco representative Karen Tillman told Bloomberg: “We will provide additional detail on the cost reductions, including layoffs, on our next earnings call.”