May 17 (UPI) — Cisco Systems said Wednesday it will cut 1,100 jobs on top of the 5,500 layoffs announced last year as part of an expanded restructuring plan.
In a conference call, CEO Chuck Robbins cited a slowdown in federal government spending.
The networking conglomerate’s stock dropped 5 percent late trading Wednesday after projecting an accelerated decline in revenue.
The company said that it expected a 4percent to 6 percent decline in year-over-year revenue for its fourth quarter, worse than the 1 percent that analysts expected.
The cuts come on top of the 5,500 layoffs — 7 percent of its workforce — the company announced in August. Reports ahead of the original announcement suggested Cisco would lay off 14,000 people.
Cisco has invested heavily in cloud computing, analytics and artificial intelligence as it transitions from being primarily a hardware company to a software provider.
The company said last year it will reinvest the cost savings from restructuring into “key priority areas such as security, IoT, collaboration, next generation data center and cloud.”