Cisco said on Wednesday it will cut up to 5,500 positions, about 7 percent of its global workforce, beginning in the fiscal first quarter of 2017.
The company said that "today's market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we've seen in our history." Cisco said it expects to reinvest the cost savings from its restructuring plan into "key priority areas such as security, IoT, collaboration, next generation data center and cloud."
The stock was down about 1 percent in extended trading.
Cisco also posted earnings and revenue that topped analyst expectations on Wednesday.