Cisco Cutting 4,000 Jobs

Profits up, jobs down:

The Silicon Valley network-equipment giant on Wednesday said it would cut 4,000 jobs, or 5% of its workforce, despite reporting an 18% jump in profit in the fourth fiscal quarter.

John Chambers, Cisco’s chief executive, blamed the decision largely on a disappointing economic recovery that is affecting particular countries and product lines in different ways.

Weak demand in China and Europe were the main culprits.