American multinational Cisco Systems has announced plans to cut 4,000 jobs due to increasing uncertainty over market demand for networking equipment.
A decision to this effect is in the pipeline inspite of the company registering strong profits in its fourth quarter.
According to the BBC, Cisco Systems plans to cut five percent of its workforce in a bid to reallocate resources for faster growth.
The announcement came after the company reported a net income of 2.3 billion dollars in quarter four, up from 1.9 billion dollars last year.
Cisco CEO John Chambers said economic recovery was slower and more inconsistent as weaker sales were reported in Japan, China and Europe.
The company was reportedly looking to reduce costs after a speculation that its revenues in the current quarter would be lower than the analysts' forecasts of 12.5 billion dollars.
Meanwhile, the company's shares has fallen more than 9 percent in after-hours trading after the announcement.
