Cisco announces the dismissal of about 4,000 employees, 5% of the workforce. The company will spend $800 million on the restructuring plan after disappointing with its results.
Shares of Cisco, a company valued at just over $200 billion, fell more than 5% after normal trading hours after results and forecasts disappointed investors. Customers are concerned about the state of the economy, leading them to delay orders and rethink the amount of equipment they may need, Chuck Robbins, president and CEO, said.