Cisco Systems Inc. said in an earnings report Wednesday that it would add 1,100 layoffs to its previously announced total of 5,500. Reports ahead of the original announcement suggested Cisco would lay off 14,000 people. The news came as Cisco provided a weak forecast that hurt its stock, and Chief Executive Chuck Robbins said in a conference call that a slowdown in federal government spending was a large factor in its guidance. Robbins said that lack of budget visibility was hurting Cisco's large business with the U.S. federal government, with about 1 point of the 4% to 6% revenue decline Cisco guided for attributable to that business. Cisco's stock dropped even more after Robbins laid out the reasons, with shares declining more than 7.5% in late trading.
Continue Reading Below
Copyright © 2017 MarketWatch, Inc.