Cisco cuts 15pc of its workforce

CISCO Systems plans to cut 15 per cent of its staff and sell a set-top box factory as part of a plan to cut annual expenses by $1bn (£620m) as the network equipment maker tries to revive its fortunes.

The company said that it will cut 11,500 jobs, compared with the several thousand that analysts had predicted.

Cisco had 73,408 employees as of the end of the last quarter, a spokeswoman said. Cisco will transfer 5,000 to Taiwan’s Hon Hai Precision Industry, which will buy the set-top box plant in Mexico.