Network equipment manufacturer Cisco Systems Inc forecasted modest growth on its revenues for this quarter. Cisco announced it expected revenues to grow anywhere from 3% to 5% this quarter. Worldwide spending for IT infrastructure has been uncertain, prompting the company to aim for the lower end of expectations.
Cisco's fourth quarter profit was USD 2.3 billion. It was an increase from the same period a year ago when the company only posted profits of USD 1.9 billion. Revenue for the current quarter also rose to USD 12.4 billion. While these results fell within Cisco's prediction three months ago, it wasn't enough for the company.
Cisco Chief Executive John Chambers said, "The environment in terms of our business is improving slightly but nowhere near the pace that we want." As a result, the IT equipment maker announced it would cut its workforce by 4,000 employees in a bid to reduce costs. The company would also move its other employees to high growth areas like data centers, cloud computing and software.
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