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.
"What we see is slow steady improvement, but not at the pace we want," Mr. Chambers told analysts on a conference call.
While orders from customers in the Americas rose 5% in the fourth period, for example, orders from Asia declined 3%—and its business in China fell 6%.
The company projected during the conference call that revenue—which rose 6% in the fourth period—will rise just 3% to 5% in the current period.
