Cisco axes thousands of jobs

Cisco Systems, the world's largest maker of computer-networking gear, is reducing its workforce by about 9% to reduce costs and raise profits, as the company tries to become more competitive, reports the Associated Press.

Yesterday's announcement, that it will cut 6 500 of its roughly 73 000 worldwide employees, follows up on a plan disclosed in May to eliminate thousands of jobs.

Two-thirds will come through lay-offs, and the rest through an early-retirement plan. The company said 15% of employees at or above the level of vice-president are being eliminated.

International Business Machines (IBM) reported second quarter net income up 8% on the same quarter last year, according to the BBC.

The rise was fuelled by strong growth in sales of both its computers and software. IBM, the world's biggest maker of mainframe computers, made $3.66 billion, compared with $3.39 billion a year earlier.

IBM raised its prediction for full-year earnings for the second quarter running. Revenue at the 100-year-old company was 12% higher, at $26 billion. Although the figures beat expectations, IBM's shares fell slightly on the results.

The number of Chinese Internet users hit 485 million at the end of June, with microblogging and group-buying posting the highest user growth rates, a Chinese government Internet statistical body said on Tuesday, reports Reuters.

The number of microblogging or Weibo users rose over 200% in the first six months of the year to 195 million users from 63.1 million at the end of 2010, said the China Internet Network Information Centre in a report.

The number of group-buying users also rose 125% to 42.2 million users from 18.7 million users at the end of 2010.

A former News of the World journalist, who blew the whistle on the extent of phone-hacking, was found dead yesterday, as the unrelenting scandal took another dark turn, reveals the Vancouver Sun.

Sean Hoare, 47, who accused his former editor, Andy Coulson, of complicity in the illegal activity, was discovered at his home, days after he made a series of fresh allegations against executives under whom he worked.

Police said his death was “unexplained”, but said they did not at this stage suspect foul play.