Networking equipment maker Cisco Systems announced its plans to cut 5% of its global workforce, which comes to more than 4,000 jobs, as part of its ongoing restructuring efforts.
The news comes as the company trimmed its earnings and revenue outlook for fiscal 2024 citing weak demand and a tough economy.
Following the announcement at the second-quarter earnings call on Wednesday, Cisco shares declined more than 5 percent in the extended trading.
Thursday, in pre-market activity on the NASDAQ, the shares were down around 4% to trade at $48.29.
Cisco Systems had 84,900 employees as of July 29, 2023.
The company said it is realigning its investments and expenses to reflect the current environment.
The company continues to see weak demand from telco and cable service provider customers.
The company sees pre-tax charges of approximately $800 million related to its restructuring plan.
Cisco expects to take the majority of these restructuring actions in the third quarter of fiscal 2024 and recognize around $500 million of these charges, while around $150 million charges will be recognized in the fourth quarter, and the remaining primarily through the first half of fiscal 2025.
For the third quarter, the company expects adjusted earnings per share in a range from $0.84 to $0.86 and revenue in the range of $12.1 billion to $12.3 billion.
For fiscal 2024, the company now expects earnings per share in a range of $3.68 to $3.74 from the previous estimate of $3.87 to $3.93, and revenues in a range of $51.5 billion to $52.5 billion, down from the previous estimate of $53.8 billion to $55 billion.