Cisco Systems to lay off about 5,500 employees

Before you go, we thought you'd like these...

Cisco Systems Laying off 14,000 Workers, According to Report

Aug 17 (Reuters) - Cisco Systems Inc 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.

SEE ALSO: Take a peek inside Google's unbelievable headquarters

However, the company's net profit rose to $2.81 billion, or 56 cents per share, in the fourth quarter ended July 30, from $2.32 billion, or 45 cents per share, a year earlier.

Revenue fell to $12.64 billion from $12.84 billion.

Technology news site CRN, citing sources close to the company, reported on Tuesday that Cisco planned to lay off about 14,000 employees, or nearly 20 percent of its workforce.

Check out the world's most valuable brands:

11 PHOTOS
World's most valuable brands
See Gallery
World's most valuable brands

10. IBM

Photo: Reuters

9. McDonald's 

Photo: Reuters

8. Verizon

Photo: Reuters

7. Amazon

Photo: Reuters

6. Visa

Photo: Reuters

5. Facebook

Photo: Reuters

4. AT&T 

Photo: Getty

3. Microsoft

Photo: Reuters

2. Apple

Photo: Reuters

1. Google

Photo: Reuters

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

(Reporting by Arathy S Nair and Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)

More on AOL.com:
9 high-paying jobs that didn't exist 10 years ago
The 5 fastest-growing dangerous jobs of 2016
3 ways to know if an employee Is a culture fit

RELATED: 10 most charitable companies

11 PHOTOS
10 most charitable companies
See Gallery
10 most charitable companies

#10: Citigroup
2015 cash contributions: $142.8 million

Photo credit: AP

#9: Alphabet (Google)
2015 cash contributions: $167.8 million

Photo credit: Getty

#8: Bank of America
2015 cash contributions: $168.5 million

Photo credit: Getty

#7: JPMorgan Chase
2015 cash contributions: $224 million

Photo credit: AP

#6: Chevron
2015 cash contributions: $225 million

Photo credit: Getty

#5: ExxonMobil
2015 cash contributions: $268 million

Photo credit: AP

#4: Goldman Sachs
2015 cash contributions: $276.4 million

Photo credit: AP

#3: Wells Fargo
2015 cash contributions: $281.3 million

Photo credit: Shutterstock

#2: Wal-Mart
2015 cash contributions: $301 million

Photo credit: Shutterstock

#1: Gilead Sciences
2015 cash contributions: $446.7 million

Photo credit: AP

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

Read Full Story

People are Reading