Cisco to cut about 5,500 jobs after 2 percent drop in revenue

New Delhi: 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.

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.