Cisco Systems reported a 2 percent drop in quarterly revenue and said it would lay off up to 5,500 employees, or nearly 7 percent of its workforce, as the world's largest networking gear maker struggles with sluggish demand for its main switching and routing business.
However, the company's net profit rose to US$2.81 billion, or 56 cents US per share, in the fourth quarter ended 30 July, from US$2.32 billion, or 45 US cents per share, a year earlier.
Revenue fell to US$12.64 billion from US$12.84 billion.
Technology news site CRN USA, citing sources close to the company, reported Wednesday US time that Cisco planned to lay off up to 14,000 employees, or nearly 20 percent of its workforce.
Reporting by Arathy S Nair and Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila
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