updated 05:58 pm EDT, Wed August 14, 2013
Layoffs of five percent of its workforce begins in 2014
Following its quarterly financial information conference call, Cisco CEO John Chambers revealed that the Silicon Valley giant will cut 4,000 jobs, or five percent of its workforce, starting in 2014. The company announced profit of $2.8 billion on sales of $12.4 billion for its fourth quarter, beating Wall Street estimates, but falling short of the company's own guidance.
Despite calling the economic climate "challenging and inconsistent" the CEO did say that he was "real pleased" with the company's growth. He did note that the company is "just not growing as fast as we need."
As a result of the financial results and the impending layoffs, the stock has fallen nearly 9.5 percent in after-hours trading to $23.89 per share. Trading volume is well above average.