Networking firm Cisco is planning to slash 5% of its workforce, about 4000 jobs, in response to unstable demand for IT equipment and services.
Cisco is projecting lower sales for the following quarter, mainly in Asia, while it reported a 6% rise to $12.4bn in its fourth quarter revenues.
During the full fiscal year that ended in July 2013, Cisco reported net income of $10.9bn and revenues of $48.6bn.
Cisco’s chief executive John Chambers was cited by the Financial Times as saying, "Last quarter, I described a continued slow recovery."
"This recovery is more mixed and inconsistent than others I’ve seen," Chambers added.
The firm expect weakness from China and Japan, where sales dropped 3% during Q4, while it expects a 3% drop in product orders from the regions for the next quarter.
The firm is also expecting a revenue growth of 3-5% for the next quarter, representing a range of $12.2bn to $12.5bn.
