In the AFR / Bloomberg this morning... Cisco Systems reported a...

In the AFR / Bloomberg this morning...

Cisco Systems reported a 2 per cent drop in quarterly revenue and said it would lay off up to 5500 employees, or nearly 7 per cent 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 $US2.81 billion ($3.7 billion), or US56 cents per share, in the fourth quarter ended July 30, from $US2.32 billion, or US45 cents per share, a year earlier.
Revenue fell to $US12.64 billion from $US12.84 billion.
Bloomberg earlier reported that technology news site CRN was saying Cisco planned to lay off about 14,000 employees, or nearly 20 per cent of its workforce.

Chief executive Chuck Robbins, who took over in July 2015, has been working to boost growth by shifting Cisco's offerings toward software-based networking, security and management products, which customers increasingly prefer because they're less expensive and more versatile.

Cisco had about 73,100 employees as of April. The company last announced a large round of firings in August 2014, when it eliminated 6,000 positions.