Shares of Cisco (CSCO) tumbled almost 7% in Thursday morning trading after the company announced a new round of layoffs.
The networking equipment maker said it will lay off 4,000 workers, about 5% of its global payroll. Word of the job cuts came as the company announced fiscal fourth quarter earnings of $2.27 billion, up from $1.92 billion in the same period last year. Adjusted EPS came in at 52 cents, narrowly topping the 51 cents Wall Street was looking for, the Associated Press notes.
Quarterly revenue was $12.42 billion, up 6% from $11.69 billion last year, and beating the $12.41 billion forecast by analysts.
Despite increased revenue and earnings last quarter, Cisco’s CEO said the world market for network equipment remained “challenging and inconsistent,” especially in Europe where northern countries are showing growth, while southern nations remain economically unstable.
The company has been disposing of non-essential assets and streamlining operations to better compete with rising competition from other networking equipment makers.
Cisco executives predict that the company’s revenue will grow between 3% and 5% during the current quarter, compared to last year. That disappointed analysts, who were looking for a 7% rise.