Cisco becomes latest tech giant to slash jobs

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.

Read more: The US stocks bucking the global selloff trend (for now)

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.

Read more: Cisco shares are going berserk

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.